On or about 10 May 2022, the International Accounting Standards Board (IASB) conducts a Post-implementation Review (PIR) of each new IFRS Standard or major amendment. A PIR is a mandatory step in the due process for new IFRS Standards or major amendments to IFRS Standards.
IFRS 10 Consolidated financial statements, IFRS 11 Joint arrangements and IFRS 12 Disclosures of interest in other entities were issued in 2011 and became effective for annual periods beginning on or after 1 January 2013.
The objectives of a post-implementation review, according to the IASB’s Due Process Handbook, are:
- to review the important issues that had been identified as contentious during the development of the pronouncement
- to consider any unexpected costs or implementation problems that have been encountered.
The following was concluded based on the analysis gathered on the feedback of the post-implementation review:
- IFRS 10: using the control model as the single basis for consolidation, including guidance for applying that model to situations in which it can be difficult for an entity to assess control, enables entities to determine whether they control another entity.
- IFRS 11: classifying joint arrangements based on a party’s rights and obligations provides a reliable representation of an entity’s interest in a joint arrangement.
- IFRS 12: the information provided in accordance with IFRS 12 enables users of financial statements to evaluate the nature of, and risks associated with an investor’s interests in other entities, including joint arrangements, associates and structured entities.
Source: IFRS, 12 May 2022.