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Tuesday 23 September 2014

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Annual Improvements

IASB meeting summaries


 IASB September 2012


 

The IASB discussed a proposed amendment to be included in the Annual Improvements Exposure Draft, which is due to be published in November 2012. The amendment aims to clarify the scope of the portfolio exception as set out in paragraph 52 of IFRS 13 Fair Value Measurement. Paragraph 52 states that the portfolio exception applies to financial assets and financial liabilities that are “within the scope of IAS 39 Financial Instruments: Recognition and Measurement or IFRS 9 Financial Instruments”.

The IASB was informed that some who are applying IFRS 13 are interpreting this paragraph to mean that the portfolio exception does not apply to contracts that do not meet the definitions of financial assets or financial liabilities according to IAS 32 Financial Instruments: Presentation (even if the contracts are within the scope of IAS 39 or IFRS 9).

To address this issue, the IASB tentatively agreed to amend paragraph 52 to clarify that the portfolio exception applies to all contracts within the scope of IAS 39 or IFRS 9, regardless of whether they meet the definitions of financial assets or financial liabilities as defined in IAS 32. This amendment will be exposed within the 2011-2013 Annual Improvements cycle.

All IASB members agreed with the decision.

Date: 9/28/2012