The International Accounting Standards Board (IASB) is proposing narrow-scope amendments to four IFRS standards as part of its Annual Improvements process.
- Simplifying the application of IFRS 1 First-time Adoption of International Financial Reporting Standards, for subsidiaries adopting IFRS later than their parent company. The proposed amendment relates to the measurement of cumulative translation differences.
- Clarifying IFRS 9 Financial Instruments, around the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. A borrower should only include fees paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf.
- Amending illustrative example 13 in IFRS 16 Leases, to remove the illustration of payments from the lessor relating to leasehold improvements.
- Aligning the fair value measurement requirements in IAS 41 Agriculture, with those in other IFRS standards by removing the requirement to exclude cashflows for taxation when measuring fair value.
The exposure draft is open for comment until 20 August 2019.
If you have any further queries, please speak to Danielle Stewart.