• IAS 34 Interim Financial Reporting
  • IAS 36 Impairment of Assets
  • IAS 39 Financial Instruments: Recognition and Measurement


  • IFRIC D18 Issued 12 January 2006. Click for Press Release (PDF 53k).
  • Comment Deadline 31 March 2006
  • The draft Interpretation was available publicly on the IASB's Website during the comment period.
  • IFRIC Interpretation 10 Interim Financial Reporting and Impairment issued 20 July 2006. Click for Press Release (PDF 61k).

Deloitte Letter of Comment on this Draft Interpretation

Important: IFRIC D18 resulted in the final IFRIC Interpretation 10, issued in July 2006. The information on this page reflects the IFRIC's discussions during the development of the final interpretation, including tentative decisions that were changed along the way. We have retained this page for historical purposes only.

Summary of IFRIC D18

IFRIC D18 addresses the interaction between the requirements of IAS 34 and the recognition of impairment losses on goodwill in IAS 36 and certain financial assets in IAS 39, and the effect of that interaction on subsequent interim and annual financial statements.

IAS 34 requires an entity to apply the same accounting policies in its interim financial statements as are applied in its annual financial statements. It also states that "the frequency of an entity's reporting (annual, half-yearly, or quarterly) shall not affect the measurement of its annual results. To achieve that objective, measurements for interim reporting purposes shall be made on a year-to-date basis."

However, IAS 36 states that "an impairment loss recognised for goodwill shall not be reversed in a subsequent period." Also, IAS 39 states that "impairment losses recognised in profit or loss for an investment in an equity instrument classified as available for sale shall not be reversed through profit or loss".

The question addressed in IFRIC D18 is whether IAS 34 requires impairment losses recognised in an interim period on goodwill and investments in equity instruments and financial assets carried at cost to be reversed or not reversed if a loss would not have been recognised, or a smaller loss would have been recognised, had an impairment assessment been made only at a subsequent balance sheet date?

IFRIC D18 proposes that an entity shall not reverse an impairment loss recognised in a previous interim period in respect of goodwill or an investment in an equity instrument or a financial asset carried at cost.

Correction list for hyphenation

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