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Annual improvements — 2018-2020 cycle

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 2018-2020 cycle. The issues covered in this cycle were discussed by the IFRS Interpretations Committee between May 2016 and November 2017. The Board discussed the issues between April 2017 and December 2018.

The following amendments are considered as part of the annual improvements 2018-2020:

Standard Subject of proposed amendment Discussed by the IFRS IC Discussed by the IASB
IFRS 1 First-time Adoption of International Financial Reporting Standards Subsidiary as a first-time adopter. The proposed amendment would require a subsidiary that applies paragraph D16(a) of IFRS 1 to measure cumulative translation differences using the amounts reported by its parent, based on the parent’s date of transition to IFRSs.

March 2017

September 2017

November 2017

December 2017

December 2018

IFRS 9 Financial Instruments Fees in the ‘10 per cent’ test for derecognition. The proposed amendment clarifies which fees an entity includes when it applies the ‘10 per cent’ test in paragraph B3.3.6 of IFRS 9 in assessing whether to derecognise a financial liability. Applying the proposed amendment, an entity would include only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf.

May 2016

September 2016

November 2016

April 2017

December 2018

IFRS 16 Leases Lease incentives. The proposed amendment to Illustrative Example 13 accompanying IFRS 16 would remove from the example the illustration of the reimbursement of leasehold improvements by the lessor. The proposed amendment would resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives are illustrated in that example.

May 2018

December 2018

IAS 41 Agriculture Taxation in fair value measurements. The proposed amendment would remove the requirement in paragraph 22 of IAS 41 for entities to exclude taxation cash flows when measuring the fair value of a biological asset using a present value technique. The proposed amendment would ensure consistency with the requirements in IFRS 13. September 2017

January 2018

December 2018

In June 2018, the Board tentatively decided to also propose some amendments to IFRS 17 Insurance Contracts as part of its next cycle of annual improvements. However, these proposed amendments have now been moved the general project regarding proposed amendments to IFRS 17 that will see an exposure draft in June 2019.

 

Current status of the project

An exposure draft of proposed amendments was published on 21 May 2019 with comments requested by 20 August 2019.

 

Project milestones

Date Development Comments
May 2016 to November 2017 Issues discussed by the IFRS Interpretations Committee
April 2017 to December 2018 Issues discussed by the IASB
21 May 2019 ED/2019/2 Annual Improvements to IFRS Standards 2018–2020 published Comments requested by 20 August 2019

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