IFRIC Update June 2018

The June 2018 edition of IFRIC Update has been published, which summarises the June 2018 meeting of the IFRS Interpretations Committee (IC).

The IC finalised a decision on the classification of short-term loans and credit facilities (such as overdrafts), stating that when such balances do not often fluctuate from being negative to positive that this is indicative the short-term arrangements are a form of financing rather than an integral part of the entity’s cash management, and, therefore, should not be classified as a cash and cash equivalent for the purposes of IAS 7 Statement of Cash Flows.

The IC also reached two tentative agenda decisions on IAS 23 Borrowing Costs and one on IAS 21 The Effects of Changes in Exchange Rates.

Further information is available from the IASB’s web site here.