IASB proposes annual improvements to IFRS Standards

The International Accounting Standards Board (IASB) has published proposed narrow-scope amendments to four IFRS Standards as part of its maintenance and improvements of the standards.

The changes are part of the standard setter’s regular cycle of maintenance and improvements to 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:

• IFRS 1 First-time Adoption of International Financial Reporting Standards – 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
• IFRS 9 Financial Instruments 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
• Illustrative xxamples accompanying IFRS 16 Leases – remove the potential for confusion regarding lease incentives by amending an Illustrative Example accompanying IFRS 16
• IAS 41 Agriculture – align the fair value measurement requirements in IAS 41 with those in other IFRS Standards