Agenda for 7-9 March 2007 IFRIC meeting

  • IFRIC (International Financial Reporting Interpretations Committee) (blue) Image

05 Mar 2007

The International Financial Reporting Interpretations Committee (IFRIC) will meet at the IASB's offices in London on Thursday and Friday 8-9 March 2007. Also, on the afternoon of Wednesday 7 March 2007, a meeting will be held, for those IFRIC members wishing to attend, to discuss the drafting of future recommendations for the IFRIC agenda.

There is no requirement for a quorum, and neither technical decisions nor agenda decisions will be made. The purpose of the meeting is to expedite the business of the IFRIC by assisting the staff to identify and analyse the issues arising in practice. On all three days, the meetings are open to the public and will be webcast. The tentative agenda is shown below.

7-9 March 2007, London Wednesday -- 7 March 2007 - afternoon only

  • IAS 39 Financial Instruments: Recognition and Measurement – Hedging future cash flows with purchased options 
The issue: How should hedge effectiveness be measured when a purchased option in its entirety is designated as a hedging instrument to hedge variability in future cash flows? Specifically, can a 'hypothetical derivative' approach be used in assessing and measuring hedge effectiveness? That approach requires an entity to take into account the time value of the option when it determines changes in the fair value of the hedged item in assessing and measuring hedge effectiveness.
  • IAS 18 Revenue – Customer contributions 
The issue: How should a government or private sector utility company account for customer contributions that arise when the utility requires the customer to provide either an infrastructure asset or cash to fund the acquisition and/or construction of such an asset in order to obtain connection to the utility company's network.
  • Preliminary discussion of IFRIC issues
    • IAS 39 – Hedging multiple risks with a single derivative hedging instrument 
    The issue: When a single derivative hedging instrument is used to hedge more than one different type of risk, does IAS 39 allow an entity to impute notional cash flows to split the fair value of the derivative hedging instrument into multiple components for the purposes of assessing and measuring hedge effectiveness?
    • IAS 39 – Scope of IAS 39 paragraph 11A 
    The issue: Does IAS 39 paragraph 11A apply to all contractual arrangements that contain one or more embedded derivatives? In particular, does that paragraph apply to hybrid contracts that contain financial or non-financial hosts outside the scope of IAS 39?
    • IAS 18 Revenue – Gaming transactions 
    The issue: How should a gaming institution account for bets or wagers received? Do such transactions give rise to revenue or are unsettled wagers financial instruments that should be accounted for using IAS 39? IFRIC members will discuss any alternative views or treatments that they feel have sufficient merit to be included in a staff paper to be presented to the IFRIC. IFRIC members will also be asked whether, in their experience, widespread divergence exists in this area.

Thursday 8 March 2007

Friday 9 March 2007 - Morning Only

  • IAS 21 Foreign Exchange: Hedging a net investment in a foreign operation
  • Review of Tentative Agenda Decisions published in January IFRIC Update
    • IAS 17 Leases – Sale and leasebacks with repurchase agreements
    • IAS 19 Employee Benefits – Special wage tax
    • IAS 36 Impairment of Assets – Identifying cash generating units in the retail industry
    • IAS 39 – Written options in retail energy contracts
    • IAS 39 – Assessing hedge effectiveness of an interest rate swap in a cash flow hedge
  • Staff Recommendations for Tentative Agenda Decisions
    • IFRS 3 Business Combinations – Re-assessments on a business combination
    • IAS 1 Presentation of Financial Statements and IAS 39 – Current or non-current presentation of derivatives not designated as hedging instruments in effective hedges
    • IAS 16 Property, Plant and Equipment and IAS 18 – Sale of assets held for rental
    • IAS 19 Employee Benefits – Curtailments and negative past service costs (Agenda paper 9(iv))

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.