IASB Proposes Annual Improvements (2018-2020)
24 May 2019
The IASB has published an exposure draft on annual improvements to several IFRSs. Annual improvements are intended to be narrow scope modifications to existing standards to either clarify the intended meaning or correct relatively minor unintended consequences, oversights or conflicts that exist in IFRS. The four proposed amendments are:
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Standard
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Proposed amendment
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IFRS 1 First-time Adoption of International Financial Reporting Standards
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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.
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IFRS 9 Financial Instruments
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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.
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Illustrative Examples accompanying IFRS 16 Leases
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Remove the potential for confusion regarding lease incentives by amending an Illustrative Example accompanying IFRS 16.
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IAS 41 Agriculture
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Align the fair value measurement requirements in IAS 41 with those in other IFRS Standards.
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Comments on the exposure draft are due by 20 August 2019.