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Administrative session — IFRS Interpretations Committee work in progress

Date recorded:

The staff provided the Committee with an update on the current status of issues that are in progress but not to be discussed during the Committee’s March 2013 meeting. The Committee deferred work on three new issues and nine outstanding issues. All such issues will be discussed at future meetings.

The new issues include:

  • A request to provide transitional relief in IFRS 10 Consolidated Financial Statements and IFRS 11 Joint Arrangements related to the application of IAS 36 Impairment of Assets, IAS 21 The Effects of Changes in Foreign Exchange Rates and IAS 23 Borrowing Costs.
  • An IFRS 3 issue requesting clarification of whether a previously held interest in the assets and liabilities of a joint operation should be remeasured to fair value on acquiring control over the joint operation.
  • An IFRS 10 and IAS 32 issue requesting clarification on how puttable instruments that are non-controlling interests should be classified in consolidated financial statements.

The outstanding issues include:

  • An IFRS 3 issue requesting clarification on whether an asset with relatively simple associated processes meets the definition of a business in accordance with IFRS 3.
  • An IAS 12 Income Taxes issue requesting clarification of the accounting for deferred tax assets when an entity has deductible temporary differences relating to unrealised losses on debt instruments.
  • An IAS 12 issue requesting clarification of the calculation of deferred tax in circumstances where the entity holds a subsidiary which has a single asset within it.
  • An IAS 19 issue regarding the accounting for employee benefit plans with a guaranteed return on contributions or notional contributions.
  • An IAS 40 Investment Property issue requesting clarification on whether telecommunication towers in a jurisdiction should be accounted for as property, plant and equipment (under IAS 16) or as an investment property (under IAS 40).
  • An IAS 29 Financial Reporting in Hyperinflationary Economies issue requesting clarification on whether an entity whose functional currency is the currency of a hyperinflationary economy as described in IAS 29 needs to apply IAS 29 to its financial statements prepared under the concept of financial capital maintenance defined in terms of constant purchasing power units rather than nominal monetary units.
  • An IFRS 2 issue requesting clarification on the classification and measurement of share-based payment transactions in which the manner of settlement is contingent on future events.
  • An IAS 2 Inventories issue requesting clarification on the accounting for long-term supply contracts of raw materials when the purchaser of the raw materials agrees to make prepayments to the supplier. The staff are monitoring this issue in the context of developments on the IASB’s revenue recognition project.
  • An IAS 39 issue requesting clarification on how the income and expense that results from negative interest rates should be presented in the statement of comprehensive income. The staff have deferred finalisation of this issue pending the completion of the IASB’s financial instruments: classification and measurement project.

One Committee member, noting the request for transitional relief in IFRS 10 and IFRS 11, highlighted the urgency of this issue – given the effective date of both standards – in order to provide relief to IFRS constituents. The staff acknowledged the urgency of the issue and plan to provide a staff paper as soon as practical possible.

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