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The Interpretations Committee decided to recommend the IASB to refrain from proceeding with the proposed amendment to IAS 7

 12 March 2013


The Exposure Draft Annual Improvements to IFRSs 2010–2012 Cycle proposed to amend IAS 7 to clarify the classification in the statement of cash flows of interest paid that is capitalised into the cost of property, plant and equipment.

The proposed amendments were to:

  1. propose that the example guidance in paragraph 16(a) of cash flows arising from investing activities should explicitly include interest paid that is capitalised into the cost of property, plant and equipment; and
  2. clarify that interest paid that is capitalised in accordance with IAS 23 Borrowing Costs should be classified in conformity with the classification of the underlying asset to which those payments were capitalised.

After considering the comments received from the respondents, the Interpretations Committee decided to recommend the IASB to refrain from proceeding with the proposed amendment to paragraphs 16(a) and 33 and with the proposed addition of paragraph 33A to IAS 7 due to the concerns raised about the implementation of the amendment. 

Read the IFRIC Update.



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