Deloitte comment letter on tentative agenda decision on IAS 38 — Presentation of player transfer payments

Published on: 14 Feb, 2020

We have commented on the IFRS Interpretations Committee's publication in the November 2019 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the presentation of the transfer payment received by an entity in exchange for releasing a player from an employment contract, when the costs to obtain the registration rights had been recognised as an intangible asset.

We agree with the IFRS Interpretations Committee’s decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision; however, we are concerned that the discussion under the header “Is there a circumstance in which the entity would recognise the transfer payment received as revenue applying IFRS 15” may introduce diversity in practice in the presentation of player registration rights as intangible assets vs inventory where it does not currently exist. We believe that it would be useful to clarify the fact pattern presented consistently with the description provided in the submission by amending item b.


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