Commodity Loans (Agenda Paper 12)

In 2017, the IFRS Interpretations Committee received a question about a particular commodity loan transaction and observed that the transaction may not be captured within the scope of any IFRS Standard.

Due to this question, the Board previously discussed a possible narrow-scope project on commodity loans and related transactions and asked the staff to research the feasibility of such a project.

The critical component of such a project would be to determine the scope (i.e. which commodity transactions should be included versus which should not be included). Based on research performed by the staff, they are aware that there are many different types of commodity transactions, however without investing additional time and effort the staff believe it is difficult to identify a population of commodity transactions for the narrow-scope project.

The staff therefore do not recommend the Board add a narrow-scope standard-setting project on commodity transactions to its work plan.

The staff think the Board should gather more information as to which types of commodity transactions stakeholders view as a priority and recommend that the Board consider referring to commodity transactions as a potential project in its Request for Information on the 2020 Agenda Consultation.