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IFRS Interpretations Committee meeting — 20 November 2017

Start date:

End date:

Location: London

IFRS IC meeting (blue)

The IFRS Interpretations Committee meets in London on Monday 20 November 2017. The Committee will discuss six issues, including three new interpretation requests.

Finalisation of draft agenda decisions

The Committee will consider the public feedback on a request related to IFRS 3 Business Combinations on the acquisition of a group of assets, which the Committee had tentatively decided not to add to its agenda.  The staff are recommending that the Committee finalise this decision.  

Continued discussions

In its September 2017 meeting, the IC tentatively decided to add a project to clarify the meaning of the term ‘unavoidable costs’, which is used in the definition of an onerous contract in IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The staff are recommending that the clarification be by way of an amendment to IAS 37 and that the scope of the project be limited to clarifying the meaning of ‘unavoidable costs’, and not consider broader issues related to identifying or measuring an onerous contract. 

In its September 2017 meeting, the IC asked the Staff to research into the scope of a potential narrow-scope amendment to IFRS 1 First Time Adoption of International Financial Reporting Standards with the aim of reducing compliance costs when a subsidiary becomes a first-time adopter later than its parent. The Staff are recommending the development of an amendment IFRS 1 to allow a subsidiary that applies paragraph IFRS 1.D16(a) to measure cumulative translation differences using the amounts reported by the parent based on the parent’s date of transition to IFRS.

New issues

There are three new issues. Two relate to IFRS 15 Revenue from Contracts with Customers:

  • Revenue recognition in a real estate contract that includes the transfer of land
  • Right to payment for performance completed to date

The third relates to IAS 1 Presentation of Financial Statements and IFRS 9 Financial Instruments:

  • Presentation of interest revenue for particular financial instruments

For all three issues the staff are recommending that the Interpretations Committee not add the issue to its agenda. 

Future items

The Staff are analysing requests received on whether a dual currency bond meets the solely payments of principal and interest condition in IFRS 9; whether an instrument for which the notional amount varies depending on the outcome of a transaction can be a hedging instrument applying IFRS 9; and how the initial recognition exemption in paragraphs 15 and 24 of IAS 12 applies to the recognition of right-of-use assets and lease liabilities arising under IFRS 16.

 

Agenda for the meeting

MONDAY, 20 November 2017

Morning session (09:40-13:10)
  • Opening remarks New issues
  • New issues:
    • IFRS 15 — Revenue recognition in a real estate contract that includes the transfer of land; right to payment for performance completed to date
    • IAS 1 and IFRS 9 — Presentation of interest revenue for particular financial instruments

Afternoon session (13:40-15:50)

  • New issues:
    • IFRS 3 — Acquisition of a group of assets
  • Items for consideration
    • IAS 37 — Costs considered in assessing whether a contract is onerous
    • IFRS 1 — Subsidiary as a first-time adopter
  • Administrative session:
    • Work in progress

Agenda papers for this meeting are available on the IASB's website.

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