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Saturday 20 December 2014

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Meeting-updates


 IASB Update May 2013


 

The staff informed the IASB about last week’s discussions with the IFRS Interpretations Committee (the Interpretations Committee) on the interaction between the use of Level 1 inputs and the portfolio exception in IFRS 13 Fair Value Measurement. The staff informed the IASB that the Interpretations Committee had concluded that this was an issue that should be considered by the IASB. The IASB also noted that this issue has similarities with the issue of the interaction between the use of Level 1 inputs and the unit of account that arises when measuring the fair value of investments in subsidiaries, joint ventures and associates. The IASB had discussed this latter issue in February and March. Consequently, the IASB decided to consider the portfolio exception issue raised by the Interpretations Committee before finalising the Exposure Draft that clarifies the fair value measurement of quoted investments in subsidiaries, joint ventures and associates. Fifteen IASB members agreed. One member was absent.

With respect to the Exposure Draft clarifying the fair value measurement of quoted investments in subsidiaries, joint ventures and associates, the IASB considered: 

    a. whether the proposed clarification should be made by amending IFRS 13 or IFRS 10 Consolidated Financial Statements, IAS 27 and IAS 28 Investments in Associates and Joint Ventures;
    b. disclosures; and 
    c. transition provisions and effective date.

The IASB tentatively decided that the clarification about the fair value measurement of quoted investments in subsidiaries, joint ventures and associates should be made to the Standards that deal with these investments. Eleven IASB members agreed.


The IASB also tentatively decided that the proposed clarification did not necessitate additional disclosure requirements.


Fifteen IASB members agreed.


The IASB did not make a decision on the transition provisions. It will consider this topic again after considering any further amendments to the Exposure Draft that may arise from its consideration of the portfolio exception issue that was raised by the Interpretations Committee.


Next steps


The IASB expects to discuss the portfolio issue in a forthcoming meeting and to issue an Exposure Draft clarifying the fair value measurement of quoted investments in subsidiaries, joint ventures and associates (together with any other clarifications arising from consideration of the portfolio issue) during the third quarter of 2013.

 

Date: 5/21/2013