IASB publishes proposals for amendments under its annual improvements project (volume 11)
12 Sep 2023
The International Accounting Standards Board (IASB) has published an exposure draft IASB/AI/ED/2023/1 'Annual Improvements to IFRS Accounting Standards — Volume 11'. It contains proposed amendments to five standards as result of the IASB's annual improvements project. Comments are requested by 11 December 2023.
The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.
The exposure draft proposes the following amendments:
| Standard | Subject of proposed amendment |
|---|---|
| IFRS 1 First-time Adoption of International Financial Reporting Standards | Hedge accounting by a first-time adopter. The proposed amendment addresses a potential confusion arising from an inconsistency in wording between paragraph B6 of IFRS 1 and requirements for hedge accounting in IFRS 9 Financial Instruments. |
| IFRS 7 Financial Instruments: Disclosures | Gain or loss on derecognition. The proposed amendment addresses a potential confusion in paragraph B38 of IFRS 7 arising from an obsolete reference to a paragraph that was deleted from the standard when IFRS 13 Fair Value Measurement was issued. |
| IFRS 7 Financial Instruments: Disclosures (implementation guidance only) |
Disclosure of deferred difference between fair value and transaction price. The proposed amendment addresses an inconsistency between paragraph 28 of IFRS 7 and its accompanying implementation guidance that arose when a consequential amendment resulting from the issuance of IFRS 13 was made to paragraph 28, but not to the corresponding paragraph in the implementation guidance. |
| IFRS 7 Financial Instruments: Disclosures (implementation guidance only) | Introduction and credit risk disclosures. The proposed amendment addresses a potential confusion in paragraph IG20C in the implementation guidance accompanying IFRS 7 because that paragraph fails to state that the example does not illustrate all the requirements in paragraph 35M of IFRS 7. |
| IFRS 9 Financial Instruments | Lessee derecognition of lease liabilities. The proposed amendment addresses a potential lack of clarity in the application of the requirements in IFRS 9 to account for an extinguishment of a lessee’s lease liability that arises because paragraph 2.1(b)(ii) of IFRS 9 includes a cross-reference to paragraph 3.3.1, but not also to paragraph 3.3.3 of IFRS 9. |
| IFRS 9 Financial Instruments | Transaction price. The proposed amendment addresses a potential confusion arising from a reference in Appendix A to IFRS 9 to the definition of ‘transaction price’ in IFRS 15 Revenue from Contracts with Customers while term ‘transaction price’ is used in particular paragraphs of IFRS 9 with a meaning that is not necessarily consistent with the definition of that term in IFRS 15. |
| IFRS 10 Consolidated Financial Statements | Determination of a ‘de facto agent’. The proposed amendment addresses a potential confusion arising from an inconsistency between paragraphs B73 and B74 of IFRS 10 related to an investor determining whether another party is acting on its behalf by aligning the language in both paragraphs. |
| IAS 7 Statement of Cash Flows | Cost method. The proposed amendment addresses af potential confusion in applying paragraph 37 of IAS 7 that arises from the use of the term ‘cost method’ that is no longer defined in IFRS Accounting Standards. |
IASB/AI/ED/2023/1 Annual Improvements to IFRS Accounting Standards — Volume 11 does not contain proposed effective dates for the proposed amendments as the intention is to decide on these after the exposure period. However, early application of the amendments is proposed to be permitted.
Please click for the following additional information:
- Press release on the IFRS Foundation website
- Access to the exposure draft on the IFRS Foundation website
- Deloitte's iGAAP in Focus newsletter
- Our IAS Plus project page on Annual improvements — Volume 11
