The International Accounting Standards Board (Board) has today published proposed narrow-scope amendments to four IFRS Standards as part of its maintenance and improvements of the Standards.
Annual improvements are limited to changes that either clarify the wording in an IFRS Standard or correct relatively minor unintended consequences, oversights or conflicts between requirements in the Standards.
Matters dealt with through annual improvements often arise from questions submitted to the IFRS Interpretations Committee.
The four proposed amendments included in this year’s annual improvements consultation document are
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Standard
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Proposed amendment
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IFRS 1First-time Adoption of International Financial Reporting Standards
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Simplify the application of IFRS 1 by a subsidiary that becomes a first-time adopter of IFRS Standards after its parent company has already adopted them. The proposed amendment relates to the measurement of cumulative translation differences.
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IFRS 9Financial Instruments
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Clarify the fees a company includes in assessing the terms of a new or modified financial liability to determine whether to derecognise a financial liability.
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Illustrative Examples accompanying IFRS 16Leases
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Remove the potential for confusion regarding lease incentives by amending an Illustrative Exampleaccompanying IFRS16.
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IAS 41Agriculture
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Align the fair value measurement requirements in IAS41 with those in other IFRS Standards.
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