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We comment on five IFRS Interpretations Committee tentative agenda decisions

  • Deloitte document (mid gray) Image

25 Nov 2019

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IAS 21, IAS 29, IFRS 15, and IFRS 16, as published in the September 2019 IFRIC Update.

More in­for­ma­tion about the issues is set out below:

Issue

Agenda decision supported?

More in­for­ma­tion

IAS 29 — Translating a hyperinflation foreign operation

Yes

IFRS 15 — Training costs to fulfil a contract

Yes; however, we are concerned that the request received by the Committee indicates a potential ambiguity on the IFRS Standard (IAS 38 vs IFRS 15) that applies to certain costs and that, without further clarity, inappropriate analogies may be drawn to the tentative agenda decision.

IAS 21 and IAS 29 — Presenting comparative amounts when a foreign operation first becomes hyperinflationary

Yes and believe it would be useful if the agenda decision confirmed how the requirements of IAS 21 paragraph 42(b) apply to comparative amounts in interim and annual financial statements when the entity has a foreign operation that becomes hyperinflationary and the entity’s financial statements are presented in the currency of a non-hyperinflationary economy.

IFRS 16 — Definition of a lease — Shipping contract

Yes and suggest some editorial changes.

IAS 21 and IAS 29 — Cumulative exchange differences before a foreign operation becomes hyperinflationary

Yes and suggest some editorial changes.

Click to access all our comment letters to the IASB, IFRS Foun­da­tion, and IFRS In­ter­pre­ta­tions Committee. 

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