The staff presented a summary of the comment letters received on the Request for Views Effective Date and Transition Methods (RFV) that was published in October 2010, focusing on the effective date and transition requirements of the forthcoming IFRSs on consolidations and joint arrangements [IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests with Other Entities, IAS 28 Investments in Associates and Joint Ventures (as revised in 2011) and IAS 27 Separate Financial Statements (as revised in 2011) (hereafter referred to as 'the five IFRSs'].
On the basis of the comment letter analysis, the IASB unanimously decided to:
- require an effective date of 1 January 2013 for all five IFRSs. In reaching this decision the Board considered that:
- the consolidations and joint arrangements projects were either identified as low-impact projects in terms of the time and resources that the implementation of the consolidation and joint arrangement IFRSs will require, or were not mentioned at all by the constituents commenting on the RFV;
- the consolidations project is a financial crisis-related project that justifies an IFRS with an earlier effective date than the other IFRSs to be issued in 2011; and
- relatively few respondents specifically requested that the consolidation and joint arrangement IFRSs should be linked to other IFRSs to be issued in 2011 and their suggestions as to which other IFRSs they should be linked was not consistent.
- permit early application of the five IFRSs but only if all five IFRSs are applied at the same time. This decision reflects the views of the majority of respondents to the RFV. The Board decided that IFRS 12 should make it clear that providing some of the disclosure requirements in IFRS 12 would not compel the entity to comply with all of IFRS 12 or to adopt IFRS 10, IFRS 11, IAS 27 (as revised in 2011) and IAS 28 (as revised in 2011) early.
- not to change the Board's previous tentative decisions regarding the transition requirements in IFRS 10 and IFRS 11. This decision reflects the views of the majority of the respondents to the RFV, who agreed with limited retrospective application when making the transition to those IFRSs.
The staff are preparing the IFRSs for ballot. A publication plan will be placed on the project pages so that the entities can see the likely publication date.