IASB issues improvements to 20 IFRSs

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22 May 2008

The IASB has published final amendments to 20 IFRSs, and the related Bases for Conclusions and guidance, resulting from the Board's Annual Improvements Project for 2007.

Some amendments, in turn, cause consequential amendments to other IFRSs. The amendments are based on proposals in an Exposure Draft published in October 2007.

The IASB's annual improvements project provides a vehicle for making non-urgent but necessary minor amendments to IFRSs.

The effective date for most amendments is annual periods beginning on or after 1 January 2009.  Click for IASB Press Release (PDF 57k).

The improvements are of two broad types:

  1. Amendments that result in accounting changes in presentation, recognition, or measurement. The topics for these are listed in the table below.
  2. Terminology or editorial changes that have no or minimal effect on accounting. These affected IFRS 7, IAS 8, IAS 10, IAS 18, IAS 20, IAS 29, IAS 34, IAS 40, and IAS 41.


Improvements of IFRSs for presentation, recognition, or measurement

IFRSTopic of amendment
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
  • Plan to sell the controlling interest in a subsidiary
IAS 1 Presentation of Financial Statements
  • Current/non-current classification of derivatives
IAS 16 Property, Plant and Equipment
  • Recoverable amount
  • Sale of assets held for rental
IAS 19 Employee Benefits
  • Curtailments and negative past service cost
  • Plan administration costs
  • Replacement of term 'fall due'
  • Guidance on contingent liabilities
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
  • Government loans with a below-market rate of interest
IAS 23 Borrowing Costs
  • Components of borrowing costs
IAS 27 Consolidated and Separate Financial Statements
  • Measurement of subsidiary held for sale in separate financial statements
IAS 28 Investments in Associates
  • Required disclosures when investments in associates are accounted for at fair value through profit or loss
  • Impairment of investment in associate
IAS 29 Financial Reporting in Hyperinflationary Economies
  • Description of measurement basis in financial statements
IAS 31 Interests in Joint Ventures
  • Required disclosures when interests in jointly controlled entities are accounted for at fair value through profit or loss
IAS 36 Impairment of Assets
  • Disclosure of estimates used to determine recoverable amount
IAS 38 Intangible Assets
  • Advertising and promotional activities
  • Units of production method of amortisation
IAS 39 Financial Instruments: Recognition and Measurement
  • Reclassification of derivatives into or out of the classification of at fair value through profit or loss
  • Designating and documenting hedges at the segment level
  • Applicable effective interest rate on cessation of fair value hedge accounting
IAS 40 Investment Property
  • Property under construction or development for future use as investment property
IAS 41 Agriculture
  • Discount rate for fair value calculations
  • Additional biological transformation


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.