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IFRS Interpretations Committee meeting — 15-16 May 2012

Start date:

End date:

Location: London

About meeting notes

Agenda for the meeting

Tuesday, 15 May 2012 (10:00-15:30)

Introduction

Active Committee projects

  • IAS 32 Financial Instruments: Presentation — Put options written on non-controlling interests
  • IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets — Contingent pricing of PPE and intangible assets
  • IFRIC 12 Service Concession Arrangements — Payments made by an operator in a service concession arrangement
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 6 Liabilities arising from Participating in a Specific Market — Waste Electrical and Electronic Equipment — Levies charged for operating in a specific market – Draft Interpretation

New items for initial consideration

  • IAS 39 Financial Instruments: Recognition and Measurement — Accounting for different aspects of restructuring Greek Government Bonds

Items for continuing consideration

  • IAS 12 Income Taxes — Recognition of deferred tax for a single asset in a corporate entity
  • IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets and IAS 17 Leases — Purchase of right to use land
  • IFRIC 15 Agreements for the Construction of Real Estate — Clarification of meaning of continuous transfer

Post-implementation reviews

  • IFRS 8 Operating Segments — Identification of issues for investigation

Administrative session

  • Committee work in progress — Effectiveness review

Wednesday, 16 May 2012 (09:00-13:00)

New items for initial consideration (continued)

  • IFRS 3 Business Combinations — Continuing employment
  • IFRS 1 First-time Adoption of International Financial Reporting Standards — Meaning of effective IFRSs
  • IAS 41 Agriculture and IFRS 13 Fair Value Measurement — Valuation of biological assets using a residual method
  • IAS 19 Employee Benefits — Accounting for contribution based promises
  • IAS 18 Revenue, IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and IAS 39 Financial Instruments: Recognition and Measurement — Regulatory assets and liabilities

Active Committee projects (continued from 15 May)

  • IAS 32 Financial Instruments: Presentation — Put options written on non-controlling interests*
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 6 Liabilities arising from Participating in a Specific Market — Waste Electrical and Electronic Equipment — Levies charged for operating in a specific market – Draft Interpretation*

* Deloitte observer notes from these sessions are included with the notes from the discussion of these topics on the Tuesday.

The agenda papers for this meeting can be accessed on the IASB's website.


Related Discussions

  • Opening comments

    May 15, 2012

    The Committee Chair opened the meeting with a few opening remarks.

  • IAS 32 — Put options written on non-controlling interests

    May 15, 2012

    The IFRS Interpretations Committee decided to issue a draft Interpretation clarifying a NCI put gives rise to a financial liability that is initially measured at the present value of the redemption amount in the parent’s consolidated financial statements and that subsequent remeasurement of the liability would be measured in accordance with IAS 39 or IFRS 9

  • IAS 16 and IAS 38 — Contingent pricing of property, plant and equipment and intangible assets

    May 15, 2012

    The IFRS Interpretations Committee received an update on the IASB's deliberations in the leases and revenue recognition projects on accounting for variable payments (as a possible base to develop a basis of accounting for contingent payments for the purchase of a single asset) directed the staff to continue monitoring developments in the IASB’s projects with a view to provide a more developed proposal regarding contingent payments for the purchase of a single asset to a future Committee meeting.

  • IFRIC 12 — Payments made by an operator in a service concession arrangement

    May 15, 2012

    The Committee analysed the issue of variable concession fees in a service concession arrangement, deciding the principles being developed in the leases and revenue recognition projects should be applied. Draft amendments to IFRIC 12 are to be prepared with a view to aligning issue of the amendments with the revised exposure draft on leasing.

  • IAS 37 and IFRIC 6 — Levies charged for participation in a specific market

    May 15, 2012

    The IFRS Interpretations Committee considered a ballot draft interpretation presented by the staff. The Interpretation addresses the accounting for levies other than income taxes that are within the scope of IAS 12 'Income Taxes', fines or other penalties imposed for breaches of legislation and contracts between a public authority and a private entity. The most significant changes to the draft interpretation since that provided by the staff during the Committee’s March 2012 meeting were the inclusion of core characteristics of levies within the scoping section of the draft interpretation and the addition of a Basis for Conclusions paragraph further describing that economic compulsion to continue operating in a future period does not create a constructive obligation to pay a levy.

  • Items for continuing consideration

    May 15, 2012

    The Committee discussed (1) IAS 12 Income Taxes — Recognition of deferred tax for a single asset in a corporate entity, (2) IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets and IAS 17 Leases — Purchase of right to use land and (3) IFRIC 15 Agreements for the Construction of Real Estate — Clarification of meaning of continuous transfer.

  • Items for continuing consideration

    May 15, 2012

    The Committee discussed (1) IAS 12 Income Taxes — Recognition of deferred tax for a single asset in a corporate entity, (2) IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets and IAS 17 Leases — Purchase of right to use land and (3) IFRIC 15 Agreements for the Construction of Real Estate — Clarification of meaning of continuous transfer.

  • IAS 12 — Recognition of deferred taxes for a single asset in a corporate entity

    May 15, 2012

    The IFRS Interpretations Committee considered the accounting for deferred tax in the consolidated financial statements of the parent when the subsidiary has only one single asset within the entity and the parent expects to recover the carrying amount of the asset inside by selling the shares in the subsidiary, deciding to further explore approaching the Board for a limited scope amendment to IAS 12 to address the issue.

  • IAS 16, IAS 38 and IAS 17 — Purchase of a right to use land

    May 15, 2012

    The Committee discussed a request from a specific jurisdiction for clarification on the purchase of a right to use land and whether it should be accounted for as a purchase of property, plant and equipment, a purchase of an intangible asset or a lease of land, and finalised a tentative agenda decision.

  • IFRIC 15 – Clarification of the meaning of continuous transfer

    May 15, 2012

    The IFRS Interpretations Committee considered advice from the IASB to retain IFRIC 15 as drafted, and that the Board noted that a careful assessment needs to be made of the facts and circumstances of individual transactions when applying IFRIC 15.

  • IFRS 3 — Continuing employment

    May 16, 2012

    The Committee received a request for clarification on whether IFRS 3. B55(a) is conclusive in determining that an arrangement in which payments to an employee that are forfeited upon termination of employment is remuneration for post-combination services and not part of the consideration for an acquisition. Mixed views were expressed by Committee, and the Committee tentatively decided to seek the Board’s views on what they thought was the right answer and then to bring back the issue for further discussion at a later Committee meeting.

  • IFRS 1 — Meaning of effective IFRSs

    May 16, 2012

    The IFRS Interpretations Committee received a request to clarify the meaning of the word “effective” as used in IFRS 1.7, particularly whether an entity has a choice between using a current version of an IFRS or adopting a new version early (where permitted to do so). The Committee tentatively decided to amend the Basis for Conclusions to IFRS 1 to eliminate a perceived conflict.

  • IAS 19 — Accounting for contribution based promises

    May 16, 2012

    The Committee received a request to clarify the accounting for contribution-based promises (i.e. how to measure the present value of the defined benefit obligation related to contribution-based promises) in accordance with IAS 19 'Employee Benefits' (2011). The Committee tentatively decided to take a fresh look at how to account for contribution-based promises using Draft Interpretation D9 as a starting point.

  • IAS 18, IAS 37 and IAS 39 — Regulatory assets and liabilities

    May 16, 2012

    The IFRS Interpretations Committee considered a request to address issues related to rate-regulated activities (i.e. to clarify whether a population of customers can be regarded as a single unit of account, and if so, whether a regulated entity should recognise a regulatory asset or liability when the entity has a right to recover specific costs, or an obligation to refund some amounts of collections irrespective of whether services are rendered in future periods).