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We comment on a number of tentative agenda decisions of the IFRS Interpretations Committee

25 Nov 2014

We have published our comment letters on IFRS Interpretations Committee agenda decisions on IAS 28, IAS 39, IFRS 12, IFRS 13, and IFRIC 21, as published in the September IFRIC Update.

More in­for­ma­tion about the issues is set out below:

IssueMore information

IAS 28 Investments in Associates and Joint Ventures — Fund manager’s significant influence over a fund

IAS 39 Financial Instruments: Recognition and Measurement — Accounting for embedded foreign currency derivatives in host contracts

IFRS 12 Disclosure of Interests in Other Entities — Disclosures for a subsidiary with a material non-controlling interest and for a material joint venture or associate

IFRS 13 Fair Value Measurement — The fair value hierarchy when third-party consensus prices are used

IFRIC 21 Levies — Levies raised on production property, plant and equipment

You can access all our comment letters to the IASB, IFRS Foun­da­tion, and IFRS In­ter­pre­ta­tions Com­mit­tee here.

IASB proposes amendments to IFRS 2 to clarify the classification and measurement of share-based payment transactions

25 Nov 2014

The International Accounting Standards Board (IASB) has published an Exposure Draft (ED) of proposed amendments to IFRS 2 'Share-based Payment' that would clarify the classification and measurement of share-based payment transactions. The ED addresses several requests the IASB and the IFRS Interpretations Committee received and the IASB decided to deal with in one combined narrow-scope project. Comments are requested by 25 March 2015.


The IASB and the IFRS Interpretations Committee received a number of requests related to IFRS 2 Share-based Payment. Respondents asked for clarification on:

  • the accounting for cash-settled share-based payment transactions that include a performance condition;
  • the classification of share-based payment transactions with net settlement features; and
  • the accounting for modifications of share-based payment transactions from cash-settled to equity-settled.

After debating the issues in earlier meetings, the IASB decided in April 2014 to address them together in one narrow-scope project.

Suggested changes

ED/2014/5 Classification and measurement of share-based payment transactions proposes the following clarifications and amendments regarding the issues:

Accounting for cash-settled share-based payment transactions that include a performance condition

IFRS 2 currently contains no guidance on how vesting conditions affect the fair value of liabilities for cash-settled share-based payments. The IASB proposes to clarify that the accounting in the case of cash-settled share-based payments should follow the same approach as used for equity-settled share-based payments.

Classification of share-based payment transactions with net settlement features

The IASB proposes to include an exception into IFRS 2 so that a share-based payment where the entity settles the share-based payment arrangement net would be classified as equity-settled in its entirety provided the share-based payment would have been classified as equity-settled had it not included the net settlement feature.

Accounting for modifications of share-based payment transactions from cash-settled to equity-settled

IFRS 2 currently does not specifically address situations where a cash-settled share-based payment changes to an equity-settled share-based payment because of modifications of the terms and conditions. The IASB proposes the following amendments:

  • On such modifications, the original liability recognised in respect of the cash-settled share-based payment is derecognised and the equity-settled share-based payment is recognised at the modification date fair value to the extent services have been rendered up to the modification date.
  • Any difference between the carrying amount of the liability as at the modification date and the amount recognised in equity at the same date would be recognised in profit and loss immediately.

Effective date and transition requirements

The ED does not contain a proposed effective date but states that earlier application would be permitted. The amendments would be applied prospectively. However, retrospective application would also be permitted if an entity has all necessary information and if the information is available without the use of hindsight.

Additional information

ED/2014/5 is open for comment until 25 March 2015. Please click for:

IASB issues work plan update for November 2014

24 Nov 2014

Following its November meeting, the International Accounting Standards Board (IASB) has updated its work plan. The revised plan adds a target date for amendments to IFRS for SMEs (Q1 2015) and a timeframe for the comment letter analysis (Q1 2015) on the discussion paper on macro hedging. Further, the IASB now expects to issue an exposure draft on the elimination of gains or losses arising from transactions between an entity and its associate or joint venture in Q1 2015 (previously Q4 2014). Lastly, it includes updates to the expected timing of board discussions for the short-term research projects on business combinations under common control (Q1 2015), discount rate (Q1 2015), emissions trading scheme (Q4 2014 through Q1 2015), equity method (Q4 2014 through Q2 2015), and financial instruments with characteristics of equity (Q4 2014), as well as, long-term research project on post-employment benefits (Q1 and Q2 2015).

Current status

The revised time table for the major projects is now as follows:

Project Current status Next project step Expected timing

Con­cep­tual Frame­work — Com­pre­hen­sive IASB project


Exposure draft

Q1 2015

Fi­nan­cial in­stru­ments — Macro hedge accounting

Dis­cus­sion paper

Comment letter analysis

Q1 2015*

In­sur­ance con­tracts



Q4 2014



Target IFRS

H2 2015

Dis­clo­sure ini­tia­tive — Prin­ci­ples of dis­clo­sure

Board dis­cus­sion

Targeted Dis­cus­sion Paper

Q2 2015

Dis­clo­sure ini­tia­tive — Amend­ments to IAS 1

Exposure draft

Target IFRS

Q4 2014

Dis­clo­sure ini­tia­tive — Rec­on­cil­i­a­tion of li­a­bil­i­ties from fi­nanc­ing ac­tiv­i­ties


Exposure draft

Q4 2014

IFRS for SMEs — Com­pre­hen­sive review


Target IFRS

Q1 2015*

Rate-reg­u­lated ac­tiv­i­ties

Dis­cus­sion paper

Public con­sul­ta­tion

Q4 2014 and Q1 2015

* In­di­cates a change since the previous work plan update on 28 October 2014.

Click for the IASB work plan dated 24 November 2014 (link to IASB website). We have updated our project pages to reflect the updated work plan and other known de­vel­op­ments.

November 2014 IFRS Interpretations Committee meeting notes — Part 3 (concluded)

24 Nov 2014

The IFRS Interpretations Committee met in London on 11 November 2014. We've posted the Deloitte observer notes for the sessions on IAS 12, IAS 19, IFRS 5, and IFRS 11.

The topics discussed were as follows (click through to access detailed Deloitte observer notes for each topic):


November 2014 IASB meeting notes — Part 1

21 Nov 2014

The International Accounting Standards Board (IASB) met at its offices in London on 19-20 November 2014. We have now posted the Deloitte observer notes from Wednesday's session on IFRS for SMEs as well as Thursday's session on leases. Additional notes will be posted in due course.

Click through for direct access to the notes:

Wednesday, 19 November 2014

Thursday, 20 November 2014

You can also access the preliminary and unofficial notes taken by Deloitte observers for the entire meeting.

IFRS Foundation updates its IFRS Research Centre site

21 Nov 2014

The IFRS Foundation has announced a revamp of its IFRS Research Centre web pages. The updates to the site include a more intuitive layout and new content for evidence-supported standard-setting, research opportunities, research impact, and news and events.

As part of the IASB’s Research Programme, the Research Centre was created to raise awareness with the research community of the work the IASB has done. It contains internal and external intellectual resources, including engagements with the academic community, as well as other resources related to the 2014 IASB Research Forum.

For more information, see the press release on IASB’s website.

November 2014 IFRS Interpretations Committee meeting notes — Part 2

20 Nov 2014

The IFRS Interpretations Committee met in London on 11 November 2014. We've posted the Deloitte observer notes for the sessions on IAS 2, IAS 16, IAS 21, IAS 39, IFRS 10, and IFRS 12.

Summary of the discussions at the second ITCG meeting

20 Nov 2014

The IASB's IFRS Taxonomy Consultative Group (ITCG) held its second meeting on 28 October 2014. The IASB has now published on its website meeting notes from that meeting.

Topics discussed were:

  • Overview of current and future activities
    Activities in the next six months will mainly focus on taxonomy updates for new standards, additional common practice and translations of element labels, trials of the IFRS Taxonomy due process, review of the licensing terms, continued work on the IFRS Taxonomy jurisdictional profiles, and additional education material.
  • Use of the IFRS Taxonomy
    The staff plans to publish a new set of materials covering how to best use the IFRS Taxonomy.
  • Management of entity-specific disclosures
    The staff is assessing whether amendments to the IFRS Taxonomy or supporting materials can be made that would result in better handling of entity specific disclosures.
  • Content review
    The ITCG reviewed proposed amendments to the IFRS Taxonomy in connection with the disclosure initative exposure draft expected to tbe published soon as well as changes to the IFRS Taxonomy resulting from amendments to IFRS 9 and related amendments to IFRS 7.
  • Common practice
    The ITCG members discussed the 2014 Common Practice project, especially common elements that do not fit into the IFRS Taxonomy structure and general or specific elements and undefined terms.
  • Use of the Versioning 1.0 Specification
    The staff reported that specific Versioning 1.0 Specification functionalities such as ‘assignment categories’ and ‘versioning dimensions’ are currently not being used within the IFRS Taxonomy and asked members of the ITCG for their views on the costs and benefits of new functionalities.
  • Updates from ITCG members and observers
    There were reports from ESMA, the SEC, the FASB and on developments in South America, China and Indonesia.

Please click for access to the meeting notes on the IASB website.

Latest edition of EFRAG Insider

19 Nov 2014

The European Financial Reporting Advisory Group (EFRAG) has published a new edition of the publicly available newsletter 'EFRAG Insider'.

16th ESMA enforcement decisions report released

18 Nov 2014

The European Securities and Markets Authority (ESMA) has published further extracts from its confidential database of enforcement decisions taken by European national enforcers. This batch deals with decisions in relation to IAS 1, IAS 7, IAS 12, IAS 16, IAS 18, IAS 32, IAS 36, IAS 38, IAS 40, IFRS 3, IFRS 5, IFRS 6, IFRS 8, and IFRS 13.

The European national en­forcers of fi­nan­cial in­for­ma­tion monitor and review fi­nan­cial state­ments pub­lished by issuers with se­cu­ri­ties traded on a reg­u­lated European market and who prepare their fi­nan­cial state­ments in ac­cor­dance with International Fi­nan­cial Re­port­ing Stan­dards (IFRS) and consider whether they comply with IFRS and other ap­plic­a­ble re­port­ing re­quire­ments, in­clud­ing relevant national law.

ESMA has de­vel­oped a con­fi­den­tial database of en­force­ment de­ci­sions taken by in­di­vid­ual European en­forcers as a source of in­for­ma­tion to foster ap­pro­pri­ate ap­pli­ca­tion of IFRS.

The pub­li­ca­tion of en­force­ment de­ci­sions is designed to inform market par­tic­i­pants about which accounting treat­ments European national en­forcers may consider as com­ply­ing with IFRS, i.e. whether the treat­ments are con­sid­ered as being within the accepted range of those per­mit­ted by IFRS. ESMA con­sid­ers the pub­li­ca­tion of the de­ci­sions, together with the ra­tio­nale behind them, will con­tribute to a con­sis­tent ap­pli­ca­tion of IFRS in the European Union.

Topics covered in the latest batch of extracts, covering the period from August 2012 to March 2014, include:



IAS 1Presentation of Financial Statements
IAS 39Financial Instruments: Recognition and Measurement
IFRS 7Financial Instruments: Disclosures

Disclosure of forborne loans

IFRS 3Business Combinations
IFRS 13Fair Value Measurement

Fair value of consideration paid in shares

IAS 32Financial Instruments: Presentation

Recognition of a liability payable to equity holders

IAS 7Statement of Cash Flows
IAS 16Property, Plant and Equipment
IAS 18Revenue

Presentation of statement of cash flows

IFRS 5Non-current Assets Held for Sale and Discontinued Operations

Presentation of discontinued operations

Presentation of non-current assets held for sale

IAS 12Income Taxes
IFRS 5Non-current Assets Held for Sale and Discontinued Operations

Deferred tax assets upon disposal of a subsidiary

IAS 12Income Taxes
IAS 16Property, Plant and Equipment
IAS 40Investment Property

Accounting for the effects of specific tax regime

IAS 36Impairment of Assets

Key assumptions used in the impairment test of goodwill

IAS 38Intangible Assets
IFRS 6Exploration for and Evaluation of Mineral Resources 

Disclosures related to capitalised costs

IFRS 8Operating Segments

Disclosure of major customers

Click for access to the full report (link to ESMA website).

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.