Review of tentative agenda decisions published in March IFRIC Update

Date recorded:

The IFRIC confirmed its decisions not to take the following items to the agenda:

  • IAS 19 Employee Benefits — Settlements
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets — Deposits on returnable containers

The Agenda Decision on IAS 19 Employee Benefits was agreed as issued in the March 2008 issue of IFRIC Update, without amendment.

The IFRIC agreed to amend the third paragraph of the Agenda Decision on IAS 37 Provisions, Contingent Liabilities and Contingent Assets included in the March 2008 issue of IFRIC Update as follows:

In circumstances in which the containers are derecognised as part of the sale transaction, either completely at the time of the first sale or partially by depreciation over a number of sales, the obligation is an exchange of cash (the deposit) for the containers (non-financial assets). Whether that exchange transaction occurs is at the option of the customer. Because the transaction involves the exchange of a non-financial item, it does not meet the definition of a financial instrument in accordance with IAS 32 and is therefore is not within the scope of IAS 39.

The Agenda Decisions will be published in the May 2008 IFRIC Update.

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