Project summaries on IFRS 8 and discount rates released
The IFRS Foundation has published two documents summarising work by the International Accounting Standards Board (IASB) on possible improvements to IFRS 8 Operating Segments and on discount rates in IFRS standards
28 Feb 2019
The project summary document sets out the reasons why particular proposed amendments to IFRS 8 were rejected.
The IFRS 8 Project Summary provides an overview of feedback on the IASB’s proposals in its Exposure Draft Improvements to IFRS 8 Operating Segments - Proposed amendments to IFRS 8 and IAS 34 Interim Financial Reporting, published in March 2017.
There was generally objections to amendments at such an insubstantive level, with investors generally calling for more significant changes to IFRS 8 than those proposed in the Exposure Draft.
Preparers also questioned whether all of the proposed amendments would improve financial reporting, while there were also calls for more clarification on certain aspects of the proposed amendments and questions about the benefits of implementing the proposed amendments versus the costs.
The Discount Rates Project Summary provides an overview of research considered by the IASB from 2014 to 2017 in its project on discount rates in IFRS. Some of the findings will be considered in the course of future standard setting and amendment projects,
The IFRS Foundation has also set out a number of issues for the IASB to consider when reviewing the accounting framework on discount rates and other aspects of present value measurements, such as selecting a measurement basis; determining when to use present values; selecting measurement inputs; ensuring consistency between measurement inputs; and approaches to determine inputs to use in present value measurement.
Project summaries are overviews of information already available to the public through IASB papers. They do not provide any new material and do not form part of IFRS standards, the Foundation confirmed.
Project Summary: Discount rates in IFRS Standards issued February 2019
Report by Sara White