IASB February 2009
Annual improvements – 2008
The Board redeliberated two issues from the exposure draft of proposed Improvements to IFRSs, published in August 2008:
- Disclosure of information about segment assets (IFRS 8) – The Board tentatively decided to amend paragraph 23 of IFRS 8 Operating Segments to clarify that an entity should report a measure of total assets and liabilities for each reportable segment if such amounts are regularly provided to the chief operating decision maker
- Cash flow hedge accounting (IAS 39) – The Board tentatively decided to amend paragraphs 97 and 100 of
IAS 39 Financial Instruments: Recognition and Measurement to clarify that, for cash flow hedges, gains and losses on hedging instruments should be reclassified from equity to profit or loss as a reclassification adjustment in the same period or periods that the hedged forecast cash flows affect profit or loss.
The Board also reconsidered the transition requirements for a third issue - classification of land leases (IAS 17). It tentatively decided that when adopting this amendment, an entity would retrospectively:
- reassess whether unexpired land leases are operating or finance leases on the basis of conditions at the inception of the leases; and
- recognise land leases that are now finance leases on the basis of the fair values at the inception of the leases.
The Board also decided tentatively not to require retrospective application when information at the inception of the leases is not available. In such cases, an entity would reassess the classification of unexpired land leases and recognise those newly classified as finance leases on the basis of conditions at, and fair values determined as of, the adoption date.
All three issues will be included in the Improvements to IFRSs to be issued in April 2009.
Annual improvements – 2009
The Board tentatively decided to include an issue in the next exposure draft, which it expects to publish in August 2009. The issue deals with how the reconciliation of each item of accumulated other comprehensive income should be presented in the statement of changes in equity. The Board proposes to amend paragraph 106 of IAS 1 Presentation of Financial Statements to clarify its original intention that the required amounts may be either presented in the statement of changes in equity or disclosed in the notes.
Location: London UK
Date: 17/02/2009
Observer Notes