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Date recorded:

The IFRS Interpretations Committee met on Tuesday 16 June 2020. The following items were discussed:

Supply Chain Financing Arrangements—Reverse Factoring: The Committee decided to publish a tentative agenda decision outlining how IFRS Standards apply to different aspects of accounting for reverse factoring arrangements (mainly presentation of the liability in the statement of financial position and presentation in the statement of cash flows). With regard to the recommended narrow-scope standard-setting on new disclosure requirements for arrangements entered in to fund payables to suppliers, no decision has been made and this will be reconsidered at a future meeting.

The comment period for the tentative agenda decision has been extended until the end of September 2020.

IFRS 16 Leases—Sale and Leaseback with Variable Payments: In March 2020, the Committee published a tentative agenda decision stating that for a sale and leaseback transaction with variable payments the seller-lessee recognises a lease liability at the date of the transaction, even if all the payments for the lease are variable and do not depend on an index or rate, reflecting how the right-of-use asset is measured to determine the gain or loss on the sale and leaseback transaction. The Committee decided to finalise the agenda decision, with some suggested changes to the drafting.

IAS 12 Income Taxes—Deferred Tax Related to an Investment in Subsidiary: In March 2020, the Committee published a tentative agenda decision that when an entity expects to recover the carrying amount of its investment in the subsidiary through distributions of profits by the subsidiary, the entity uses the distributed tax rate to measure the deferred tax liability related to its investment in the subsidiary. The Committee decided to finalise the agenda decision.

IAS 38 Intangible Assets—Player Transfer Payments: In November 2019, the Committee published a tentative agenda decision stating that when a football club transfers a player to another club it recognises the gain or loss in profit or loss applying IAS 38, and not revenue (IFRS 15). However, the agenda decision suggested that the intangible asset could be classified as inventory (IAS 2) if it was is acquired for development and sale in the ordinary course of business. The Committee decided to finalise the agenda decision, with the suggested removal of the analysis under IAS 2.

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