IASB consults on narrow-scope amendments to IFRS 9 and IAS 28
The International Accounting Standards Board (IASB) is consulting on minor amendments to IFRS 9 Financial Instruments and to IAS 28 Investments in Associates and Joint Ventures to aid implementation, even before IFRS 9 is implemented
12 Oct 2017
The amendments to the financial instruments standard, IFRS 9, has had to be changed before the standard is even implemented to allow companies to measure particular pre-payable financial assets with negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met, instead of at fair value through profit or loss.
The amendments to IAS 28 Investments in Associates and Joint Ventures clarify that companies accounting for long-term interests in an associate or joint venture where the equity method is not applied, have to use IFRS 9.
The IASB has also published an example that illustrates how companies apply the requirements in IFRS 9 and IAS 28 to long-term interests in an associate or joint venture.
The IFRS Taxonomy will be updated to reflect the new presentation and disclosure requirements introduced by the amendments to IFRS 9.
It has also released the Proposed IFRS Taxonomy Update - Prepayment Features with Negative Compensation for public consultation.
The closing date for comment is 11 December 2017.
Access the documents here (eIFRS Professional/Comprehensive is required to view the amendments):
- Prepayment Features with Negative Compensation (Amendments to IFRS 9);
- Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28);
- Illustrative Example—Long-term Interests in Associates and Joint Ventures; and
- Proposed IFRS Taxonomy Update—Prepayment Features with Negative Compensation.