We comment on five IFRS Interpretations Committee tentative agenda decisions
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.