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Deferring the Effective Date of the September 2014 Amendments to IFRS 10 and IAS 28 [Completed]

Effective date:

The amendments defer the effective date of the September 2014 amendments to IFRS 10 and IAS 28 indefinitely until the research project on the equity method has been concluded.

Accordingly, the amendments to IFRS 10 and IAS 28 have been returned to the "IFRSs issued but not yet effective" section.

Transitional provisions:

The effective date of the September 2014 amendments to IFRS 10 and IAS 28 has been deferred indefinitely. Earlier application of the September 2014 amendments continues to be permitted.

Last updated:

February 2016

Overview

At the end of 2015, the IASB published final amendments to IFRS 10 and IAS 28, which defers the effective date of the September 2014 amendments to these standards indefinitely until the research project on the equity method has been concluded.

The IASB published a proposal to postpone the date when entities must change some aspects of how they account for transactions between investors and associates or joint ventures.

The postponement applies to changes introduced by the IASB in 2014 through narrow-scope amendments to IFRS 10, Consolidated Financial Statements and IAS 28, Investments in Associates and Joint Ventures. Those changes affect how an entity should determine any gain or loss it recognizes when assets are sold or contributed between the entity and an associate or joint venture in which it invests. The changes do not affect other aspects of how entities account for their investments in associates and joint ventures.

The postponement removes the current requirement to make these particular changes by 2016. Instead, entities could wait until after the IASB has carried out a planned broader review that may result in the simplification of accounting for such transactions and of other aspects of accounting for associates and joint ventures.

Other developments

February 2016

In February 2016, the amendments to IFRS 10 and IAS 28 have been returned to the "IFRSs issued but not yet effective" section of the CPA Canada Handbook Part I.

December 2015

On December 17, 2015, the IASB published final amendments to IFRS 10, Consolidated Financial Statements and IAS 28, Investments in Associates and Joint Ventures. The amendments defer the effective date of the September 2014 amendments to these standards indefinitely until the research project on the equity method has been concluded. Earlier application of the September 2014 amendments continues to be permitted. The AcSB will also complete its due November 2015

On November 26, 2015, the AcSB released an article where it discussed the amendments expected to be issued by the IASB by the end of the year that would defer the effective date of the amendments to IFRS 10 and IAS 28 until it carries out a planned broader review of the topic. After the AcSB completes its due process to approve the deferred effective dates, the amendments to IFRS 10 and IAS 28 will be moved to the "IFRSs issued but not yet effective" section of Part I. This means that entities can wait to apply the amendments to IFRS 10 and IAS 28.

On November 23, 2015, the IASB updated its Work Plan in respect of this project to note that it is currently drafting the final amendments to the IFRS, which it expects to issue by February 29, 2016.

August 2015

On August 24, 2015, the AcSB issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Comments on the Exposure Draft are due by October 9, 2015.

On August 10, 2015, the IASB published the Exposure Draft, ED/2015/7, Effective Date of Amendments to IFRS 10 and IAS 28, to postpone the effective date of proposed amendments to IFRS 10 and IAS 28. The amendments proposed aim at deferring the effective date of the September 2014 amendments of these standards indefinitely until the research project on the equity method has been concluded. The IASB suggests that earlier application of the September 2014 amendments should continue to be permitted.  Comments on the Exposure Draft are due by October 9, 2015.

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