Agenda paper summary

The regular update summary paper on the most recent IFRS Interpretations Committee (IFRS IC) meeting was made available.

Discussion

The Board’s attention was drawn to two narrow amendments proposed by the IFRS IC. These proposed amendments relate to IAS 16 and IAS 12.

The proposed amendment to IAS 16 would clarify that proceeds from the sale of items, during the period in which PPE is readied for use, should not be deducted from the cost of that PPE.

The other proposed amendment relates to the presentation requirements of IAS 12and relates to income tax payments associated with instruments classified as equity.

Two agenda decisions were highlighted: IAS 32 and prepaid cards and variable payments in asset purchases.

One Board member raised concern regarding a tentative agenda decision; accounting for loss of control transactions in the context of IFRS 11 and IFRS 10. They would like the staff to ensure that any decision reached by the IFRS IC should be consistent with that to be included in the IFRS 3 ED.

Classification of liabilities (proposed amendments to IAS 1): Agenda Paper 12A

Staff intends to alter the proposed timing for submitting its proposals relating to the Classification of Liabilities until after the Boards redeliberations of the definitions of an asset and a liability in the Conceptual Framework project. This will allow for any Classification of Liabilities proposals to be consistent with the Board’s conclusions relating to these revised definitions.

Discussion

After a brief discussion, the staff clarified that before amending IAS 1, they were waiting for discussions of the concept of ‘rights and obligations’ to be concluded (as part of the Conceptual Framework project). This would avoid wording in IAS 1 contradicting the Conceptual Framework.