IFRIC Update

Date recorded:

The IFRIC Chairman gave an overview of IFRIC operations together with a status summary of various projects.

The Board was then asked to approve certain interpretations:

IFRIC Amendment to SIC-12


IFRIC - Emission Rights

One Board member made the point that the IFRIC's consensus could be viewed, not as a government grant, but rather, a revenue recognition issue in general. Some debate ensured around this point. The Board however approved the issue of this Interpretation.

IFRIC - Determining Whether an Arrangement Contains a Lease

The point was made that the transition requirements would not be consistent with EITF 01-8, with Staff reiterating the point that IFRIC's position on this issue had been swayed by the potential loss of comparability if prospective application was required.

Concern was raised regarding the wording in the interpretation that referred to 'portions' which emanates from legacy differences in the underlying Standards (SFAS 13 and IAS 17). The Staff were asked to include in the basis for conclusions, explicit statements around the areas that had been converged and differences that remained between this Interpretation and EITF 01-8 as a result of such legacy differences.

The Board approved the Interpretation subject to the amendments discussed.

Correction list for hyphenation

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