The International Accounting Standards Board (IASB) has issued several minor amendments to IFRS 1 and IFRS 12 clarifying the requirements of the particular accounting standards in a bid to maintain compliance levels
The changes will come into force from 1 January 2017 for IFRS 12 Disclosure of Interests in Other Entities.
In addition, the amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 28 Investments in Associates and Joint Ventures will come into effect for accounting periods from 1 January 2018.
The amendments include the following:
- IFRS 1: Deletion of short-term exemptions for first-time adopters
- IFRS 12: Clarification of the scope of the standard.
- IAS 28: Measuring an associate or joint venture at fair value.
The IASB has also issued clarification on foreign currency transactions in IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration. This focuses on the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. It is effective 1 January 2018.
The amendments to IAS 40 Investment Property clarify the requirements on transfers to, or from, investment property and are effective for accounting periods beginning after 1 January 2018.
The IAS 40 revision was made after requests for clarification of the application of paragraph 57, regarding whether a property under construction or development that was previously classified as inventory could be transferred to investment property when there was an evident change in use. The IASB subsequently agreed to amend the paragraph.
The relevant documents can be accessed via the below links on eIFRS: