The International Accounting Standards Board (IASB) has issued narrow-scope amendments Prepayment Features with Negative Compensation (Amendments to IFRS 9) and to Long-term Interests in Associates
and Joint Ventures (Amendments to IAS 28) to aid implementation.
The Amendments to the IFRS 9 allow companies to measure prepayment features financial assets with negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met, instead of at fair value through profit or loss.
The Amendments to IAS 28 clarify that companies account for long-term interests in an associate or joint venture, to which the equity method is not applied, using IFRS 9.
The IASB has also published Illustrative Example – Long-term Interests in Associates and Joint Ventures that illustrates how companies apply the requirements in IFRS 9 and IAS 28 to long-term interests in an associate or joint venture.
The IASB has also publish the Proposed IFRS Taxonomy Update – Prepayment Features with Negative Compensation for comments by 11 December 2017 to reflect the new presentation and disclosure requirements introduced by the amendments to IFRS 9.
The following documents can be download from IFRS website:
- Prepayment Features with Negative Compensation (Amendments to IFRS 9);
- Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28);
- Illustrative Example Long-term Interests in Associates and Joint Ventures; and
- Proposed IFRS Taxonomy Update Prepayment Features with Negative Compensation.
Source: IFRS, 12 October 2017