IFRS 11 — Remeasurement of previously held interests

Date recorded:


The Interpretations Committee was analysing whether previously held / retained interests in the assets and liabilities of a joint operation should be remeasured in several transactions for which there was a lack of guidance and /or diversity of views in accounting for previously held/ retained interests.

This session was focused on a transaction in which an entity obtained control or joint control of a joint operation that did not meet the definition of a business. The Interpretations Committee noted that paragraph 2(b) of IFRS 3 provided guidance on the typical accounting for an asset acquisition in which the asset or group of assets did not meet the definition of a business. The staff did not identify diversity in practice on this transaction.

The purpose of this session was to discuss the comment letters received. The agenda paper indicated that the majority of respondents supported the staff analysis and accordingly the staff proposed to finalise the agenda decision.


The Interpretations Committee agreed with issuing an agenda decision with wording changes to reflect some concerns discussed during the session. Those concerns related to paragraph 2b) of IFRS 3.  Committee members thought that it did not provide enough guidance (which was also suggested in one the comment letters) and accordingly, the agenda decision should provide more background information.

No other significant comments were made.

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