Review of tentative agenda decisions published in November IFRIC Update

Date recorded:

The IFRIC confirmed the decisions not to take the following items to the Agenda:

  • IAS 19 Employee Benefits — Pension promises based on performance hurdles
  • IAS 23 Borrowing Costs — Foreign exchange and capitalisable borrowing costs
  • IAS 19 Employee Benefits — Definition of plan assets
  • IAS 39 Financial Instruments: Recognition and Measurement — Scope of IAS 39 paragraph 2(g)

In doing so, the IFRIC had suggestions on the wording of the Agenda Decision notices. A final agenda decision will be published in the January 2008 issue of IFRIC Update.

  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets — Deposits on returnable containers

The IFRIC received a comment letter disagreeing with the wording in the tentative agenda decision that stated that the obligation to refund deposits on returnable containers is not within the scope of IAS 39 Financial Instruments: Recognition and Measurement. The comment letter noted that the obligation to refund the deposit is not an executory contract but a financial instrument payable on demand if the containers remain part of the property, plant and equipment of the supplier.

The IFRIC reaffirmed its decision not to add this issue to the agenda but did not reach a consensus on whether the obligation to refund the deposit is within the scope of IAS 39. The staff was asked to further explore this issue for discussion at a future meeting.

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