IASB launches consultation on minor changes to IFRS standards
The International Accounting Standards Board has launched consultation on the proposed narrow-scope amendments to four International Financial Reporting Standards.
The three-month-long consultation period is a part of the board's maintenance and improvements of the standards. 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.
The four proposed amendments included 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 after its parent company has already adopted them. The proposed amendment relates to the measurement of cumulative translation differences.
- IFRS Financial Instruments: Clarify the fees a company includes in assessing the terms of a new or modified financial liability to determine whether to derecognise 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.
For the proposed amendments included in this exposure draft, a single comment letter may be submitted using any one of the four project pages.
Respondents need not submit separate comment letters for each individual proposed amendment nor do they need to submit the same comment letter on all four project pages, the board advised.
The comment deadline is 20 August 2019.