IASB March 2010

The Board discussed eight of the proposed Improvements to IFRSs from the exposure draft published in August 2009. On the basis of the comments that the Board received from respondents and the recommendations of the IFRIC, the Board tentatively decided to finalise six of the improvements.

IFRS 1 First-time Adoption of International Financial Reporting Standards - Accounting policy changes in the year of adoption

The amendment clarifies that if a first-time adopter changes its accounting policies or its use of the exemptions in IFRS 1 after it has published an interim financial report in accordance with IAS 34 Interim Financial Reporting for part of the period covered by its first IFRS financial statements, it will be required to explain those changes and update the reconciliations to IFRS from previous GAAP of its equity and total comprehensive income.

IFRS 3 Business Combinations - Un-replaced and voluntarily replaced share-based payment transactions

The amendment clarifies the accounting for replaced and un-replaced share-based payments in connection with a business combination. The Board also tentatively decided how the transition provisions apply and to reflect in the Basis for Conclusions the rationale for the distinction in accounting for replaced share-based payment transactions of the acquiree depending on whether they expire or not as a result of the business combination.

IAS 1 Presentation of Financial Statements - Clarification of statement of changes in equity

The amendment states that an entity shall present the changes in components of equity either in the statement of changes in equity or in the notes to the financial statements. The Board also tentatively decided to retain the current wording of paragraph 107 of IAS 1 - subject to minor edits - to emphasise that dividends recognised as distributions need be disclosed separately.

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors - Change in terminology to the qualitative characteristics

The Board conditionally decided to finalise the amendment to enhance consistency with the terminology changes made in the forthcoming conceptual framework that will replace the Framework. This tentative decision is subject to the relevant chapters of the forthcoming conceptual framework being issued before finalisation and issue of Improvements to IFRSs.

IAS 27 Consolidated and Separate Financial Statements - Transition requirements for amendments made as a result of IAS 27 (as amended in 2008) to IAS 21, IAS 28 and IAS 31

The amendment clarifies that the consequential amendments made to IAS 21, IAS 28 and IAS 31 as a result of the 2008 amendment of IAS 27 require prospective application.

IFRIC 13 Customer Loyalty Programmes - Fair value of award credits

The Board tentatively decided to clarify that the fair value of awards in paragraph AG2(a) reflects, for example, the amount of discounts or incentives that would otherwise be offered to customers who have not earned award credits from an initial sale. In addition, the Board amended the Illustrative Examples to extend the examples to the possible redemption in goods rather than in cash only.

Review of illustrative examples to previously recommended proposed amendment

The Board considered the illustrative examples relating to the proposed amendment for IFRS 3 Business Combinations - Measurement of non-controlling interests and asked the staff to revise these in the light of some concerns that had been raised.

Revision to proposed improvement to IFRS 1

The Board discussed a revision to the proposed IFRS 1 amendment relating to the extension of the 'deemed cost' exemption in paragraph D8 of IFRS 1.

At its meeting in February 2010, the Board decided to finalise the original amendment that extends the 'deemed cost' exemption to event-driven revaluations that occurred during the period covered by the entity's first IFRS financial statements. The amendment also states that entities that had previously applied IFRS 1 could apply the amendment retrospectively in the first annual period after the amendment is effective.

However, some entities that had the type of event-driven revaluations described in the amendment adopted IFRS before IFRS 1 was issued. At this meeting, the Board tentatively decided to extend the proposed amendment to paragraph D8 of IFRS 1 to be available for such entities.

Proposed amendments recommended for removal, without finalisation, from Annual Improvements

The Board also tentatively decided to remove from the Annual Improvements process, without finalisation, two proposed amendments that had been included in the Improvements to IFRSs exposure draft in August 2009:

• IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Application of IFRS 5 to loss of significant influence over an associate or loss of joint control over a jointly controlled entity. Following the Board's February 2010 tentative decisions relating to the Joint Arrangements project and the definition of 'significant economic events', the Board tentatively decided to bring the issue back as a sweep issue at a future meeting.
• IAS 40 Investment Property - Change from fair value model to cost model. The Board asked the IFRIC to reconsider this issue as part of the next Annual Improvements cycle in light of the comments received.