Deloitte comment letter on IFRIC tentative agenda decision: 'IAS 39 — Application of the Effective Interest Rate Method'
Published on:
16 Jun 2008
![Deloitte Comment Letter Image]()
In summary, we believe the tentative agenda decision wording does not provide sufficient clarity and that additional interpretive guidance is needed. We believe there are three important interpretative issues that need to be addressed:
- how to apply the effective interest rate to debt instruments with a market-based reset;
- when should an entity apply AG7 compared to AG8; and
- for inflation linked debt, is it possible to analogise with IAS 29 in the case when an entity is not applying that standard.
