Thursday 18 December 2014
The issues relate to several requests with regard to the application of the requirements of IFRS 11.
The Interpretations Committee has been discussing various implementation issues relating to IFRS 11 since November 2013. The Interpretations Committee discussed those issues at its meeting in November 2013, January 2014, March 2014, May 2014 and July 2014.
The issues that have been addressed are as follows:
With regard to Issue 1(ie classification of the joint arrangement, especially with regard to the assessment of ‘other facts and circumstances’), the Interpretations Committee first examined conceptual aspects of the requirements for assessing ‘other facts and circumstances’. Specifically, it dealt with the following issues:
On the basis of the conclusions and observations from Issue 1A and 1AA, the Interpretations Committee discussed how specific fact patterns affect the assessment of ‘other facts and circumstances’. The specific issues it considered were:
With regard to Issue 2 (ie accounting by the joint operators), the Interpretations Committee discussed this issue by considering a circumstance in which the joint arrangement is classified as a joint operation following the assessment of ‘other facts and circumstances’ which shows that:
In that circumstance, the Interpretations Committee addressed how the joint operators should recognise assets, liabilities, revenues and expenses in relation to their interest in the joint operation by:
With regard to Issue 3 (ie accounting within the separate financial statements), the Interpretations Committee discussed the accounting by the joint operation in its (separate) financial statements.
At its July 2014 meeting, the Interpretations Committee considered the next steps with regard to various issues that it had identified at its November 2013 meeting. The Interpretations Committee noted that its discussion on joint arrangements in its meetings from November 2013 would help stakeholders address implementation issues relating to IFRS 11. The Interpretations Committee therefore decided to discuss, at its next meeting, how it can best document its conclusions and observations from this work so that it will be helpful for stakeholders.
At its September 2014 meeting, the Interpretations Committee noted that the most appropriate way of documenting its work is to publish it in IFRIC Update rather than develop a new form of communication.
The Interpretations Committee also noted that a series of agenda decisions, each describing a separate aspect of its discussions and capable of standing alone, would be preferable. Consequently, the Interpretations Committee asked the staff to prepare separate summaries for each topic that has been discussed.
The Interpretations Committee decided to document its work in IFRIC Update
The Interpretations Committee decided to discuss how it can best document its work so that it will be helpful for stakeholders
The Interpretations Committee finalised its decision not to address one issue
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