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IFRS Interpretations Committee meeting — 22 March 2016

Start date:

End date:

Location: London

IFRS IC meeting (blue)

The IFRS Interpretations Committee held a one-day meeting in London on 22 March 2016. 

During the meeting the Committee decided to amend two Standards and finalise agenda decisions in relation to five issues. Two of the topics were longer-standing issues — accounting for the proceeds and costs of testing PP&E and the classification of a liability for prepaid cards in the issuer’s financial statements. 

They were not able to reach a decision on three topics, which will come back at a future meeting once the staff have undertaken additional analysis. The Committee ran out of time, deferring the discussion on the last three technical topics. 

Potential amendments

The Committee decided that IAS 16 Property, Plant and Equipment should be amended to require that any proceeds from testing an asset being prepared for use be recognised as revenue.  This will remove a difference between IFRS and US GAAP. 

In relation to the accounting for income tax consequences of payment on financial instruments classified as equity, the Committee has decided to propose an amendment to IAS 12 Income Taxes.

Final agenda decisions

The Committee also agreed to finalise decisions not to amend or interpret IFRS in relation to:

  • Prepaid cards;
  • Remeasurement of previously held interests in joint arrangements, when control is lost;
  • Variable payments for asset purchases;
  • Determining hedge effectiveness for net investment hedges; and
  • Offsetting and cash pooling arrangements.

Unresolved matters

The Committee did not agree with the staff recommendations for three of the papers, and they will come back to a future meeting:

  • Combined service concession and lease arrangements;
  • Long-term interests (IFRS 9 and IAS 28); and
  • Recoverable cash advances provided by Government.
The committee did not have sufficient time to discuss the final three papers, deferring any discussion to the May meeting.

More detailed summaries can be found below, for the individual projects.


Agenda for the meeting


TUESDAY, 22 MARCH 2016 (12:00-14:50)

Morning session (09:45-12:45)

  • Opening remarks, administrative matters, and meeting minutes of the January meeting
  • Items for continuing consideration:
    • IAS 16 — Accounting for proceeds and costs of testing of PPE
    • IFRS 11 — Remeasurement of previously held interests
    • IAS 32 — Classification of liability for prepaid cards in the issuer’s financial statements
    • IAS 12 — Accounting for income tax consequences of payments on financial instruments classified as equity

Afternoon session (13:45-17:40)

  • Items for continuing consideration (continued):
    • IFRIC 12 — Combined service concession and lease arrangements
    • IFRS 9/ IAS 28 — Long-term interests
  • Agenda decisions to finalise:
    • IAS 20 — Recoverable cash advances provided by Government
    • IAS 16 — Variable payments for asset purchases
    • IFRS 9 — Determining hedge effectiveness for net investment hedges
    • IAS 32 — Offsetting and cash pooling arrangements
    • IAS 36 — Recoverable amount and carrying amount of a cash-generating unit
    • IFRS 9/ IAS 39 — Derecognition of modified financial assets
  • New issue:
    • IAS 12 — Expected manner of recovery when calculating DT on indefinite life intangible assets
  • Administrative Session — Work in progress, Statistics

Agenda papers for this meeting are available on the IASB's website.

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