On or about 22 May 2019, the Accounting Standards Council (ASC) invites comments on Exposure Draft ED/2019/2 Annual Improvements to IFRS Standards 2018–2020 by 12 July 2019. Comments to reach ASC by 12 July 2019. The compiled comments would then be summarised and forwarded to the IASB.
On or about 21 May 2019, the International Accounting Standard Board (IASB) has published the Exposure Draft ED/2019/2 of proposed narrow-scope amendments to 4 IFRS Standards as part of its Annual Improvements process.
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.
The four Standards or accompanying documents that would be affected by the proposed amendments are as follows:
- 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 already 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 de-recognise 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; and
- IAS 41 Agriculture: Align the fair value measurement requirements in IAS 41 with those in other IFRS Standards.
IASB invites comments particularly on whether the respondents agree with IASB’s proposal to amend the Standards and accompanying documents in the manner described in the ED. It also seeks further recommendations.
The comment deadline by IASB is 20 August 2019.
Source: ASC website, 22 May 2019