Post-implementation review of IFRS 10, IFRS 11 and IFRS 12

Date recorded:

Due process steps undertaken in the first phase (Agenda Paper 7)

In September 2019, the first phase for the post-implementation review (PIR) of IFRS 10-12 was outlined to the Board. In April 2020, the Board discussed the findings from the first phase of the PIR and agreed the matters to be examined further in Request for Information (RFI).

The purpose of this paper was to summarise the Board’s tentative decisions, summarise the due process steps taken and ask the Board to approve the RFI.

Summary of the Board’s tentative decisions

In April 2020, the Board agreed that the RFI would cover the following areas:

  • (a) IFRS 10:
    • (i) power over an investee, including relevant activities, rights that give an investor power over an investee and control without a majority of voting rights;
    • (ii) the link between power and returns, including principal and agent and non-contractual agency relationships;
    • (iii) investment entities, including criteria for identifying an investment entity and subsidiaries that are investment entities; and
    • (iv) accounting requirements for transactions that give rise to a change in ownership; and the partial acquisition of a subsidiary that does not constitute a business.
  • (b) IFRS 11:
    • (i) collaborative arrangements outside the scope of IFRS 11;
    • (ii) classification of joint arrangements; and
    • (iii) accounting requirements for joint operations.
  • (c) IFRS 12: to what extent the requirements assist an entity to meet the objective of the Standard.

Staff recommendations

The staff recommendation was that the Board:

  • a. Agree a 180 day comment period for the RFI.
  • b. Agree that all mandatory due process steps have been taken.
  • c. Approve the publication of the RFI.

Board Discussion

Some Board members supported 150 days rather than 180 days as a 180 day period would exacerbate the overlap with other consultations.

Board Decisions

All 13 Board members voted in favour of the publication of the RFI and all due process steps having been completed.

11 Board members voted in favour of a comment period of 150 days.

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