May 2017 IASB Update available

The International Accounting Standards Board (IASB) has published its May 2017 edition of Update, which summarises its meeting that took place on 16-17 May 2017.

The decisions made by the IASB relate only to Implementation and maintenance of IFRS standards as follows

Uncertainty over Income Tax treatments

The IASB ratified the draft IFRIC Interpretation Uncertainty over Income Tax Treatments, which addresses how to reflect uncertainty in accounting for income taxes

Amendment to IAS 28

The IASB tentatively decided to finalise the proposed amendments to IAS 28 Investments in Associates and Joint Ventures, which were included in the Exposure Draft Annual Improvements to IFRS Standards 2015-27.  The amendments would clarify that IFRS 9 Financial Instruments applies to long-term interests in associates or joint ventures, i.e. those interests to which the equity method is not applied, but that in substance from part of the net investment in the associate or joint venture.  The IASB further tentatively decided to:

• clarify in IAS 28 that an entity applies the requirements in IFRS 9 to long-term interests before applying the loss allocation and impairment requirements in IAS 28; and in applying IFRS 9, the entity does not take account of any adjustments to the carrying amount of long-term interests that result from application of IAS 28.
• include an example illustrating how the requirements in IAS 28 and IFRS 9 interact;
• set an effective date of 1 January 2019, with earlier application permitted; and
• require retrospective application, with transition requirements similar to those in IFRS 9 Financial Instruments regarding the classification and measurement of financial assets for entities that apply the amendments after they first apply IFRS 9.

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