Narrow scope amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23

In December, the International Accounting Standards Board issued narrow-scope amendments to four IFRS Standards as part of the annual Improvements to IFRS Standards 2015–2017 cycle.

The changes are effective from 1 January 2019, with early application permitted.

IFRS 3 Business Combinations 

The amendments clarify that a company remeasures its previously held interest in a joint operation when it obtains control of the business.

IFRS 11 Joint Arrangements

The amendments clarify that a company does not remeasure its previously held interest in a joint operation when it obtains joint control of the business.

IAS 12 Income Taxes

The amendments clarify that a company accounts for all income tax consequences of dividend payments in the same way.

IAS 23 Borrowing Costs

The amendments clarify that a company treats as part of general borrowings any borrowing originally made to develop an asset when the asset is ready for its intended use or sale.  

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