IFRS implementation issues

Date recorded:

IFRS Implementation Issues — Agenda paper 12

The purpose of this session was to discuss the following:

  • Accounting policy changes (Amendments to IAS 8) — Due Process Steps: AP 12A

September IFRIC Update


With regard to the tentative agenda decision on how to apply IFRS 15 to the sale of pre-completion residential units (see AP 2 to the September IFRIC meeting), one Board member was concerned that it may not be appropriate for the tentative agenda decision to give an explicit answer to a very specific fact pattern. She was concerned that the facts submitted may not represent all the relevant facts and circumstances that should be considered before reaching a conclusion. Furthermore, whether revenue should be recognised at a point in time or over time in the submitter’s scenario is one that would require significant judgement. By giving an explicit answer, the IC could be seen as endorsing a particular treatment given a particular fact pattern which could be misapplied by analogy. Such a response could also encourage entities to submit queries for ‘sign-off’ by the IC. The Vice-Chair acknowledged her concern.

Accounting policy changes (Amendments to IAS 8) — Due Process Steps — Agenda Paper 12A


In its September 2017 meeting, the Board tentatively decided to propose amending IAS 8 to lower the impracticability threshold regarding retrospective application of voluntary changes in accounting policies that result from agenda decisions. The proposed threshold would include a consideration of the costs and benefits of applying the change retrospectively.

In this session, the Staff asked the Board for permission to ballot the exposure draft (‘ED’) with a 120-day comment period.

Next steps

The Staff plan to begin the balloting process in October 2017 and expect to issue the ED in the first quarter of 2018.


The Board unanimously approved the Staff’s recommendation.

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