IASB consults on IFRS 1, IFRS 12 changes to improve consistency

In a bid to address inconsistencies in a number of International Financial Reporting Standards (IFRS) standards, the International Accounting Standards Board (IASB) has released details of proposed amendments to three accounting standards as part of its annual improvements process

The proposals include amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards, IFRS 12, Disclosure of Interest in Other Entities and IAS 28, Investments in Associates and Joint Ventures.

The IFRS 1 proposal will delete the short-term exemptions for first-time adopters.

On IFRS 12, IASB is planning to clarify the scope of the disclosure requirements.

For IAS 28, the amendment applies to the accounting rules when an investment is an associate or joint venture measuring investees at fair value through profit or loss on an investment-by-investment basis. This clarifies that the election is available for each investment on an investment-by-investment basis, upon initial recognition.

This is part of the standard setter’s annual improvements 2014-16 cycle which is designed to make it easier for reporters to keep up to speed with minor amendments in a structured way.

The proposals are open for public comment until 17 February 2016.

The exposure draft can be accessed here

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