This is part of the annual improvements to IFRS standards 2015–2017 cycle, which makes narrow-scope amendments to International Financial Reporting Standards (IFRS).

Amendments made as part of this process either clarify the wording in an IFRS Standard or correct relatively minor oversights or conflicts between existing requirements of IFRS Standards.

IFRS 3 Business Combinations establishes principles and requirements for how an acquirer in a business combination recognises and measures the assets and liabilities acquired, and any interest in the acquiree held by other parties.

The standard has been amended to clarify that a company re-measures its previously held interest in a joint operation when it obtains control of the business.

IFRS 11 Joint Arrangements establishes principles for financial reporting by entities that have an interest in arrangements that are controlled jointly (joint arrangements).

The clarification states that a company does not re-measure its previously held interest in a joint operation when it obtains joint control of the business.

IAS 12 Income Taxes, which prescribes the accounting treatment for reporting income taxes including all domestic and foreign taxes that are based on taxable profits, has been clarified to state that a company accounts for all income tax consequences of dividend payments in the same way.

On IAS 23 Borrowing Costs, the standard has been tweaked to state that a company treats as part of general borrowings any borrowing originally made to develop an asset when the asset is ready for its intended use or sale.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 are effective from 1 January 2019, with early application permitted.

Annual Improvements to IFRS Standards 2015–2017 Cycle (eIFRS Professional/Comprehensive subscription is required to view the amendments).