IFRS Interpretations Committee meeting — 8 November 2016
- Uncertainty over Income Tax Treatments – Due Process (Agenda paper 4)
The staff were given clearance to start the process to finalise the Interpretation, which will have an effective date of 1 January 2019.
Finalisation of draft agenda decisions
The IC considered the public feedback on two matters which the IC had tentatively decided not to add to its agenda:
- IAS 12 Income Taxes: Expected manner of recovery of intangible assets with indefinite useful lives (Agenda Paper 3); and
- IAS 32 Financial Instruments: Presentation - Written put option over NCI (Agenda Paper 9)
The IC finalised both decisions, and will not add the matters to its agenda.
- IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement – Fees and costs included in the ’10 per cent’ test for the purposes of derecognition (Agenda Paper 2)
The Staff recommends proposing an annual improvement rather than addressing the matter through an agenda decision.
- IAS 28 Investments in Associates and Joint Ventures - Assessment of significant influence: Fund manager acting as an agent and holding own investments in the fund (Agenda Pape 11)
The IC decided not add these issues to its agenda and to issue tentative agenda decisions to that effect.
The IC discussed five new issues. The IC decided that the following matters should not be taken onto the agenda and will issue tentative agenda decisions to that effect:
- Commodities - Commodity loans (Agenda paper 10)
- IFRS 10 Consolidated Financial Statements - Investment Entities—Consolidation of subsidiaries – (Agenda paper 5)
- IFRS 9 Financial Instruments – modifications /exchanges of financial liabilities that do not result in derecognition (Agenda Paper 6). This paper was included in the September agenda but was not discussed for lack of time.
For the remaining two issues the staff provided their initial analysis and sought feedback from the IC ahead of a discussion by the IASB:
- IFRS 9 Financial Instruments — Impact of symmetric ‘make whole’ and fair value prepayment options on the assessment of the SPPI condition (Agenda paper 7)
- IFRS 9 Financial instruments/IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – discontinuation of hedge accounting and business model assessment when a subsidiary is held for sale. (Agenda paper 8)
The IC members expressed a variety of views, but agreed that the topic on discontinuation of hedge accounting required further analysis.
Post-implementation review of IFRS 13 Fair Value Measurement
The IC was asked for initial input on areas the review should cover. Several matters were raised by members. There was particular emphasis on difficulties faced by less developed economies. (Agenda Paper 12)
Agenda for the meeting
TUESDAY, 8 November 2016Morning session (09:15-13:10)
Afternoon session (14:10-17:35)
Agenda papers for this meeting are .