European Union formally adopts Annual Improvements to IFRS - Cycle 2011-2013

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19 Dec 2014

The European Union has published a Commission Regulation endorsing 'Annual Improvements to IFRSs 2011–2013 Cycle'.

Commission Regulation (EC) No 1361/2014 of 18 December 2014 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council published in the Official Journal on 19 December 2014 adopts Annual Improvements to IFRSs 2011–2013 Cycle issued by the IASB in December 2013.

The amendments impacted four standards:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards (changes to the Basis for Conclusions only, so not part of the EU endorsement),
  • IFRS 3 Business Combinations,
  • IFRS 13 Fair Value Measurement, and
  • IAS 40 Investment Property.

The IASB's annual improvements process is intended to enhance the quality of standards, by amending existing IFRSs to clarify guidance and wording, or to correct for relatively minor unintended consequences, conflicts or oversights when such amendments are considered non-urgent but necessary.

The amendments are effective in the EU for annual periods beginning on or after 1 January 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014).

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