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Annual Improvements (2010-2012 and 2011-2013 cycles) — Sweep issues

Date recorded:

Issue 1: Due process complaint on the amendment to IAS 40

BusinessEurope was incorrectly identified as a supporter of proposed amendments to IAS 40 Investment Property and consequently submitted a due process complaint to have this corrected.

Question: Having reviewed the original comment letter from BusinessEurope again, we are now asking the IASB: if we had written paragraph 16 of Staff Paper 11D as follows, would the IASB have made a different decision?

The Board agreed that they would not have made a different decision.

Issue 2: Fatal flaw in the amendment to the BC on IFRS 1

One fatal flaw reviewer thinks that there is a fatal flaw in the amendment to the BC on IFRS 1 First-Time Adoption of International Financial Reporting Standards, because it explains the authoritative requirements rather than the IASB’s rationale for determining the requirements in the Standard. The reviewer believes that non-authoritative material is being used to provide guidance on how to apply the Standard.

Issue 3: Fatal flaw in the amendment to the BC on IFRS 13

Similar to Issue 2, the same reviewer thinks that there is a fatal flaw in the amendment to the Basis for Conclusions on IFRS 13 Fair Value Measurement, because changes to the Basis for Conclusions should be restricted to describing why and how Standards are developed and not include any guidance for applying them.

The staff recommend that in relation to Issues 2 and 3, no further changes be made and that the Board finalise:

  1. the amendment to IAS 40 — Clarifying the interrelationship of IFRS 3 Business Combinations with IAS 40 when classifying property as investment property or owner-occupied property;
  2. the amendment to the Basis for Conclusions on IFRS 1 — Meaning of effective IFRSs; and
  3. the amendment to the Basis for Conclusions on IFRS 13 — Short-term receivables and payables.

Question: Does the IASB agree with the staff recommendation to confirm the finalisation of the amendments to IAS 40, IFRS 1 and IFRS 13?

The Board agreed.

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