The ED of the proposed Annual Improvements to IFRSs 2010–2012 Cycle published in May 2012 included a proposal to clarify the classification in the statement of cash flows of interest paid that is capitalised as part of the cost of property, plant and equipment.
On the basis of the comments received from respondents and the recommendations of the IFRS Interpretations Committee, the IASB decided not to finalise the proposed amendment to paragraphs 16(a) and 33 and the proposed addition of paragraph 33A to IAS 7 because of:
- concerns raised about the implementation of the amendment; and
- the Interpretations Committee’s observation that amendments to IAS 7 relating to classification of cash flows should not be made on a piecemeal basis unless the classification is evident from the current guidance in IAS 7 and an amendment to IAS 7 would make that classification clearer.
All IASB members agreed.
The IASB plans to issue the amendments Annual Improvements to IFRSs 20102012 Cycle in the third quarter of 2013.