Improvements project

Date recorded:

IAS 33

The Board confirmed its February decision regarding mandatory redeemable preferred stock, namely that they should be included in the basic EPS calculation.

IAS 16

The Board decided to clarify (as questions are being received) that property, plant, and equipment related to agricultural and extractive industries are in the scope of IAS 16.

The staff came back with a new wording regarding the commercial substance, and the Board agreed that a definition of 'an entity specific value' should be added as well.

The Board agreed (8-6) that incidental income that arises from incidental operations that are necessarily undertaken to arrive at the final asset or process should be deducted from the cost of the asset but that income from other incidental operations should be taken to income.


The Board confirmed that all entities that do not meet the fair value measurement scope exclusion should record their inventories at the lower of cost or net realisable value and that there is no further exemption for entities operating in high inflation economies.

They agreed that the standard would not require the disclosure of the amount of inventories held at net realisable value but that the amount of the writ down would be disclosed.

IAS 27

The Board agreed to extend the exemption for intermediate parents to not prepare consolidated financial statements, under the circumstances specified, to include equity accounting and proportionate consolidation of associated and joint ventures.

IAS 28

The Board agreed to retain the requirement that associates financial information used for equity accounting may only differ from the investor by a maximum of three months.

The Board agreed to retain the requirement that equity accounted results should be prepared using uniform accounting policies with the group.

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