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We comment on proposals on IFRICs 9 and 16

  • Deloitte Comment Letter Image

05 Mar 2009

Deloitte has submitted a Letter of Comment on the IASB's exposure draft of 'Post-implementation Revisions to IFRIC Interpretations – Proposed amendments to IFRIC 9 and IFRIC 16'.

The proposed changes are:

  • IFRIC 9: Exclude from the scope of IFRIC 9 embedded derivatives in contracts acquired in combinations of entities or businesses under common control or in the formation of a joint venture.
  • IFRIC 16: Allow entities to designate as a hedging instrument in a hedge of a net investment in a foreign operation an instrument that is held by the foreign operation that is being hedged.

We agree with the proposal to amend IFRIC 9 and urge its adoption. At this time, however, we are not ready to support the proposal to amend IFRIC 16 as it is not clear to us what fact pattern the Board has in mind and whether the rationale applies to all situations where the hedging instrument is being held by the foreign operation being hedged. Additionally, we have some concern about the proposed effective date of the IFRIC 16 amendment.

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Correction list for hyphenation

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