IASB Issues Annual Improvements

The International Accounting Standards Board (IASB) has issued amendments to several International Financial Reporting Standards (IFRS), Annual Improvements to IFRS Standards 2015–2017 Cycle (2017 Annual Improvements).

The 2017 Annual Improvements adopt narrow-scope amendments to IFRS Standards that include minor revisions that clarify, correct, or remove redundant wording and amend the following:

  • IFRS 3, Business Combinations, amended to clarify that a company is to remeasure its previously held interest in a joint operation when it obtains control of the business
  • IFRS 11, Joint Arrangements, amended to clarify that a company is not to remeasure its previously held interest in a joint operation when it obtains joint control of the business
  • International Accounting Standard (IAS) 12, Income Taxes, clarified to state that a company accounts for all income tax consequences of dividend payments in the same way   
  • IAS 23, Borrowing Costs, clarified to provide that a company treats as part of general borrowings any borrowing originally made to develop an asset when the asset is ready for its intended use or sale. 

The amendments made by the 2017 Annual Improvements are effective from 1 January 2019. Early application is permitted.

Links to the 2017 Annual Improvements are available on this link. http://www.ifrs.org/news-and-events/2017/12/international-accounting-standards-board-issues-annual-improvements-to-ifrs-standards/

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