Implementation Matters - IFRIC Update (Agenda Paper 12A & 12B)

Background

The purpose of this meeting wass to provide the Board with an update on recent IFRS Interpretations Committee meetings. No decisions were asked from the Board.

Discussion

As regards “IFRS 9 Financial Instruments—Physical Settlement of Contracts to Buy or Sell a Non-financial Item (Agenda Paper 11 at the March 2019 IFRS Interpretations Committee meeting)” one Board member noted that the conclusion in the agenda decision is correct, however the overall outcome was not desirable. At the date of the transaction, which is a simple delivery of goods, recognising revenue on the receipt of cash applying IFRS 15 Revenue from Contracts with Customers might provide more useful information compared to applying IFRS 9, as stated in the agenda decision.

One Board member said that when IFRS Standards are unclear and this leads to an accounting policy choice, the Interpretations Committee should remain silent on what is the best choice.