Deloitte comment letters on recent tentative agenda decisions of the IFRS Interpretations Committee
05 Apr 2013
Deloitte’s IFRS Global Office has submitted comment letters to the IFRS Interpretations Committee (Committee) on three tentative agenda decisions published in the January 2013 edition of 'IFRIC Update', in relation to IAS 7, IAS 28 and IFRS 3, and IFRS 2.
In each case, we agree with the IFRS Interpretations Committee’s decision not to add the items onto its agenda for the reasons set out in the tentative agenda decision. However, we offer some minor suggestions on two of the tentative agenda decisions.
The three issues are as follows:
| Topic | Issue | More information |
|---|---|---|
| IAS 7 — Identification of cash equivalents | The basis of classification of financial assets as cash equivalents in accordance with IAS 7 Statement of Cash Flows, specifically whether this should be based on remaining period to maturity as at the balance sheet date rather than the current focus on the investment’s maturity from its acquisition date | |
| IAS 28 & IFRS 3 — Associates and common control | Whether it is appropriate to analogise the scope exemption for business combinations under common control included in IFRS 3 to the acquisition of an interest in an associate or joint venture under common control | |
| IFRS 2 — Timing of recognition of intercompany recharges | Clarification on the timing of recognition of a liability in relation to intragroup recharges made in respect of share-based payments, particularly in the specific fact pattern in which the parent company of an international group grants share-based awards to the employees of its subsidiaries. |
