June 2017 IFRIC Update Available

The International Accounting Standards Board (IASB) has published its June edition of IFRIC Update which summarises the decisions reached by the IFRS Interpretations Committee (IC) in its meeting on 13 June 2017

The IC finalised decisions on the following matters regarding issues discussed at previous meetings, and decided not to add topics on the following matters to its standard-setting agenda:

• IAS 19 Employee Benefits – Discount rate to be used in a country that has adopted another country’s currency;
• IAS 32 Financial Instruments: Presentation – Centrally cleared client derivatives;
• IAS 33 Earnings per Share – Tax arising from payments on participating equity instruments.  An illustrative example will be published as educational material to accompany the agenda decision; and
• IAS 41 Agriculture – Biological assets growing on bearer plants.

The IC decided not to finalise the agenda decision made tentatively at the March meeting on the accounting for modifications of financial liabilities that do not result in derecognition.  Although the IC agreed with the staff analysis that an entity should recognise an adjustment for the revised contractual cash flows on the modification date, in light of the comments received it has referred the matter back to the IASB.

The IC also tentatively decided not to add topics on the following matters to its standard-setting agenda:

• IFRS 3 Business Combinations – Acquisition of a group of assets that does not constitute a business;
• IAS 28 Investments in Associates and Joint Ventures – Acquisition of an associate or joint venture from an entity under common control;
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets – Costs considered in assessing whether  contract is onerous; and
• IAS 38 Intangible Assets – Goods acquired for promotional activities.

The full copy of IFRIC Update is available from the IASB’s web site here.