IASB Proposes Amendments to Four IFRS Standards

The IASB has published proposed narrow-scope amendments to four IFRS Standards as part of its maintenance and improvements of Standards.

Background

Annual improvements are limited to changes that either clarify the wording in an IFRS Standard or correct relatively minor unintended consequences, oversights or conflicts between requirements in the Standards. Matters dealt with through annual improvements often arise from questions submitted to the IFRS Interpretations Committee.

Standard and Proposed Amendment

The four amendments proposed in this year’s annual improvements consultation document are:

-IFRS 1 First-time Adoption of International Financial Reporting Standards: Simplify the application of IFRS 1 by a subsidiary that becomes a first-time adopter of IFRS Standards after its parent company has adopted them. The proposed amendment relates to the measurement of cumulative translation differences.

-IFRS 9 Financial Instruments: Clarify the fees a company includes in assessing the terms of a new or modified financial liability to determine whether to derecognize a financial liability.

-Illustrative Examples accompanying IFRS 16 Leases: Remove the potential for confusion regarding lease incentives by amending an Illustrative Example accompanying IFRS 16.

-IAS 41 Agriculture: Align the fair value measurement requirements in IAS 41 with those in other IFRS Standards.

Comment Period

The comment deadline is August 20, 2019.

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