The Director of Implementation Activities gave an update on the IFRIC's current activities.

It was noted that two draft Interpretations have gone into their redeliberation phase and that IFRIC reconfirmed the need for an Interpretation on both issues.

Regarding D23 Distributions of Non-cash Assets to Owners the approach has been basically reaffirmed, but IFRIC asked the staff to conduct some research on the issue of the measurement mismatch between the asset (measured at cost) and the dividend liability (measured at fair value) once the entity is committed to make a distribution.

The redeliberations of D24 Customer Contributions proved somewhat more difficult, notably on the revenue recognition side. The Director of Implementation Activities highlighted that any Interpretation would give some guidance on if (and when) to recognise an asset that has been contributed, but that providing guidance on if (and when) to recognise revenue was difficult. The final Interpretation could be referring only to the existing guidance in IAS 18 Revenue.

Another project of the IFRIC involves amendments to IFRS 2 and IFRIC 11 covering group cash-settled share-based payments. The staff noted that the thrust of the amendments will shift from amending the scope to amending the definitions to avoid receiving submissions to provide guidance on specific scenarios on a recurring basis. The ultimate goal would be to cover all share-based payment transactions in group scenarios. The amendments would describe both the consolidated financial statements accounting as well as the accounting for the entity receiving goods/services in its separate financial statements. It was noted that any output from the staff work would go directly to the Board.

At the end of this session the Director of Implementation Activities informed the Board that IFRIC has published one agenda decision (on the application of the effective interest rate method in IAS 39) with a recommendation that the Board clarifies the applicable Standard and three tentative agenda decisions (on lease payments in an operating lease, revenue recognition for trailing commissions and equity transaction costs). Also, IFRIC has asked the staff to conduct further research on compliance cost in the context of the EU's Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) environmental regulation. The staff highlighted that it would try to incorporate the existing guidance in IFRIC 1 on how to account for obligations arising from the Waste Electrical and Electronic Equipment (WEEE) regulation of the EU, as well as guidance in other IFRSs.