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IFRS News In Brief

PUBLICATIONS AND ANNOUNCEMENTS Accounting changes for transactions between investors and associates or joint ventures postponed On 17 December 2015, the IASB confirmed the indefinite deferral of the effective date of the September 2014 narrow-scope amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture until such time as it has finalised a broader review of the equity method of accounting.

For more information: https://www.ifrs.org/Alerts/PressRelease/Pages/IASB-postpones-accounting-changes.aspx

Proposals for amendments to IFRS 4 open for comment until 8 February 2016

On 9 December 2015, the IASB published an exposure draft aimed at providing optional reliefs for insurers in order to address the temporary consequences of the different effective dates of IFRS 9 Financial Instruments and the forthcoming new Insurance Contracts Standard (to replace IFRS 4).

For more information: https://www.ifrs.org/Alerts/PressRelease/Pages/IASB-proposes-amendments-to-the-current-Insurance-Contracts-Standard-to-provide-temporary-reliefs-for-insurers.aspx


The following is a summarised update on the main provisional decisions taken by the IASB at its meeting on 15-16 December 2015, sometimes jointly with the FASB. Other discussions of the Board included the Disclosure Initiative, due processes (for amendments to IFRS 2, IFRS 3, IFRS 11, etc.),feedback on the exposure draft Classification of Liabilities (IAS 1),and measurement of long-term interests that in substance form part of the net investment in an associate or joint venture (IAS 28).

For more detailed and comprehensive information on the Board’s discussions: https://media.ifrs.org/2015/IASB/December/December_IASB_Update.html

Definition of a Business (exposure draft to amend IFRS 3 due Q2/2016)

  • The 'substantially all' threshold approach would be retained. Thus, a set in which substantially all the fair value of the gross assets acquired is concentrated in a single identifiable asset (or group of similar identifiable assets) would not be considered as a business.
  • A building acquired with an in-place operating lease should be considered a single asset for the evaluation of the 'substantially all' threshold.
  • Acquired outsourcing agreements might be considered to provide an organised workforce; the acquirer should consider whether those agreements perform a substantive process.
  • An acquired supplier that ceases generating revenues (because all output is consumed by the acquirer) would still be 'capable of' generating revenues, and thus might qualify as a business if the other criteria are met.
  • Examples would illustrate application of the proposed guidance to the financial and extractive industries sectors.

Revenue from Contracts with Customers (final amendments to IFRS 15 due Q1/2016)

  • The factors that indicate when two or more promises to transfer goods or services are not separately identifiable would be clarified.
  • An entity using the modified retrospective transition method would be permitted to apply:
  • IFRS 15 either to all contracts, or to contracts that are not completed at the date of its initial application.
  • the contract modifications practical expedient (if elected) either at the beginning of the earliest period presented in the financial statements in which IFRS 15 is first applied, or at the date of initial application of IFRS 15.
  • Variability arising solely from changes in a market price (e.g. commodity price) would not be subject to the variable consideration constraint in IFRS 15.
  • For the principal versus agent evaluation, exposure to credit risk would be eliminated as an indicator of control.
  • Most of the proposals in the exposure draft would be confirmed and finalised: clarification of the application guidance relating to specific licensing issues, amendment of the transition requirements, clarifications to the principal versus agent guidance, etc.


19 January 2016DI/2015/1 - Uncertainty over Income Tax Treatments
19 January 2016DI/2015/2 - Foreign Currency Transactions and Advance Consideration
8 February 2016ED/2015/11 - Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Proposed amendments to IFRS 4)
17 February 2016ED/2015/10 - Annual Improvements to IFRSs 2014–2016 Cycle
26 February 2016ED/2015/8 - IFRS Practice Statement: Application of Materiality to Financial Statements
18 March 2016ED/2015/9 - Transfers of Investment Property (Proposed amendment to IAS 40)


On 27 December 2015, RSM International submitted a letter of comment to the IASB on its Request for Views 2015 Agenda Consultation

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