Annual improvements — Volume 11
Background
The IASB's annual improvements project provides a streamlined process for dealing efficiently with a collection of amendments to IFRSs. The primary objective of the process is 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. Amendments are made through the annual improvements process when the amendment is considered non-urgent but necessary.
This page tracks developments in the annual improvements process for the 11 volume of amendments. The issues covered in this cycle were first discussed by the IFRS Interpretations Committee in November 2022. The Board first discussed the issues in February 2023. An exposure draft of proposed amendments is expected in September 2023.
Current status of the project
Completed 2024. The IASB issued Annual Improvements to IFRS Accounting Standards — Volume 11 on 18 July 2024.
| Standard | Subject of amendment |
|---|---|
| IFRS 1 First-time Adoption of International Financial Reporting Standards | Hedge accounting by a first-time adopter. The 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 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 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 amendment addresses a potential confusion by clarifying in paragraph IG1 that the guidance does not necessarily illustrate all the requirements in the referenced paragraphs of IFRS 7 and by simplifying some explanations. |
| IFRS 9 Financial Instruments | Lessee derecognition of lease liabilities. The 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 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 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 amendment addresses a 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. |
Project milestones
| Date | Development | Comments |
|---|---|---|
| November 2022 | First issues discussed by the IFRS Interpretations Committee | |
| February 2023 | First issues discussed by the IASB | |
| 12 September 2023 | IASB/AI/ED/2023/1 Annual Improvements to IFRS Accounting Standards — Volume 11 published | Comments requested by 11 December 2023 |
| 18 July 2024 | Annual Improvements to IFRS Accounting Standards — Volume 11 published | Amendments are effective for annual reporting periods beginning on or after 1 January 2026 |
