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IASB approves seven new Interpretations

  • IASB (International Accounting Standards Board) (blue) Image

20 Dec 2001

At its meeting this week, the IASB Board approved seven final Interpretations (SIC-27 to SIC-31, and SIC-33) and tentatively approved an Interpretation on website costs.

The approved Interpretations are as follows:

  • SIC-27 Evaluating the Substance of Transactions in the Legal Form of a Lease
  • SIC-28 Business Combinations – 'Date of Exchange' and Fair Value of Equity Instruments
  • SIC-29 Disclosure – Service Concession Arrangements
  • SIC-30 Reporting Currency – Translation from Measurement Currency to Presentation Currency
  • SIC-31 Revenue – Barter Transactions Involving Advertising Services
  • SIC-33 Consolidation and Equity Method – Potential Voting Rights and Allocation of Ownership Interests
  • SIC-34 Financial Instruments - Instruments or Rights Redeemable by the Holder (was approved, but an effective date has not yet been set).

SIC-32 Intangible Assets - Web Site Costs was tentatively approved. However, the Board objected to the lack of convergence of the paragraphs dealing with the graphical design of a website with other similar literature on the topic. For instance under US GAAP, EITF 00-2, Accounting for Website Development Costs, allows for the capitalisation of these costs. The SIC proposed to expense the cost of graphical design as incurred. The SIC was urged to take another look at these specific paragraphs and try to seek further convergence. No objections to the other paragraphs were made.

Correction list for hyphenation

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