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Annual improvements 2012-2014 cycle — IFRS 7

Date recorded:

This issue was referred to the Board by the Interpretation Committee.

The amendments to IFRS 7 Disclosure – Offsetting Financial Assets and Financial Liabilities were issued in December 2011 (dealing with the reconciliation from gross to net presentation). Paragraph 44R of IFRS 7 stated that ‘An entity shall apply those amendments for annual periods beginning on or after 1 January 2013 and interim periods within those annual periods.’ There was uncertainty about whether the additional disclosures should be included in condensed interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting on an on-going basis given that IAS 34 has not been amended.

The Board members re-visited the history of the amendments: they were introduced during the economic crisis; FASB introduced similar amendments with a requirement to include the disclosures in the interim financial statements. However, IAS 34 was not consequentially amended at the time.

With the benefit of hindsight, the Board confirmed by a majority (12 voted for View 1), that the additional disclosures are not required in condensed interim financial statements, as this would lead to the unnecessary hardship and excessive information, besides any material movements should be disclosed anyway in accordance with IAS 34.

The Board decided to amend IFRS 7 (paragraph 44R) accordingly.

Correction list for hyphenation

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