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Sunday 31 August 2014

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IASB July 2010

Meeting Summaries and Observer Notes


 IASB July 2010


 

 

IFRS 1 First-time Adoption of International Financial Reporting Standards - Fixed dates in the derecognition exception and in the financial instruments initial measurement exemption

The IASB discussed a recommendation from the IFRS Interpretations Committee to change the fixed dates in IFRS 1 to the 'date of transition to IFRSs'. The intention is to provide relief to first-time adopters from having to reconstruct transactions. The Board tentatively decided to publish an exposure draft with a 60-day comment period so that the relief may be available in time for those jurisdictions that are planning to adopt IFRSs in the near future.

IFRS 1 First-time Adoption of International Financial Reporting Standards - Clarification of borrowing costs exemption

The Board discussed a proposed amendment to clarify the accounting for borrowing costs at the date of transition to IFRSs. The issue arose because constituents perceived a lack of clarity in the guidance in IFRS 1 with respect to the accounting, at the date of transition, for borrowing costs capitalised in accordance with previous GAAP for projects completed or under-construction at the date of transition to IFRS.

The proposed amendment will clarify that the amount for capitalised borrowing costs determined under previous GAAP should be retained at the transition date, and that subsequent borrowing costs should follow the requirements of IAS 23.

The Board tentatively decided to include the proposed amendment within the next Improvements to IFRSs exposure draft.

IAS 16 Property, Plant and Equipment - Clarification of accounting for servicing equipment

The Board discussed a proposed amendment to address a perceived inconsistency in IAS 16 with respect to the classification of servicing equipment as property, plant and equipment (PP&E) or inventory.

The proposed amendment will clarify that servicing equipment is PP&E when used during more than one period; it should otherwise be classified as inventory. It will also delete the requirement that spare parts and servicing equipment used only in connection with an item of PP&E should be classified as PP&E.

The Board tentatively decided to include the proposed amendment within the next Improvements to IFRSs exposure draft.

 

Date: 7/21/2010