IAS 12 Income Taxes narrow-scope amendment Recognition of Deferred Tax Assets for Unrealised Losses—Due process steps followed (Agenda Paper 12A)
The IASB met on 22 July to discuss IFRS implementation issues. The IASB reviewed the due process steps undertaken in completing the narrow-scope amendments to IAS 12 on the recognition of deferred tax assets for unrealised losses.
All IASB members agreed that:
- the amendments to IAS 12 should be finalised without re-exposure;
- the effective date of the amendments should be 1 January 2017 and earlier application should be permitted; and
- the due process requirements to date have been complied with.
No IASB members indicated that they intend to dissent from the publication of the final amendments to IAS 12.
The IASB plans to issue the final amendments to IAS 12 in Q4 of 2015.
Sale or Contribution of Assets between an Investor and its Associates or Joint Ventures—Deferral of effective date (Agenda Paper 12B)
At its June 2015 meeting the IASB decided to suspend work on a narrow-scope amendment to IFRS 10 Consolidated Financial Statements and IAS 28 Associates and Joint Ventures and, instead, decided to address those issues as part of the research project on the equity method of accounting. It also decided to postpone the effective date of a related amendment, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, which was completed and issued in September 2014, (the ‘September 2014 Amendment’) to prevent the requirements of IAS 28 being changed twice within a short space of time.
At this meeting, the IASB decided:
- to propose that the effective date of the September 2014 Amendment should be deferred for an indefinite period. Early application should continue to be allowed. Ten IASB members agreed with this decision.
- that a short comment period of 60 days should be set so that the proposals can be finalised before the effective date of the September 2014 Amendments, ie 1 January 2016. The IASB noted that this shorter period has been approved by the Due Process Oversight Committee. All IASB members agreed with this decision.
The IASB expects to issue an Exposure Draft Effective Date of Amendments to IFRS 10 and IAS 28 in early August.
Next steps for a series of issues relating to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (Agenda Paper 12C)
The IASB considered various IFRS 5 issues that the IFRS Interpretations Committee (the ‘Interpretations Committee’) has discussed but has not yet resolved, and discussed what further work would be appropriate.
The IASB decided that the issues should be divided into those that could be considered in the short term and those that could be considered in the medium to longer term. For the medium- to longer-term issues, the IASB tentatively decided to include a reference to the IFRS 5 concerns raised by the Interpretations Committee in the Request for Views for the forthcoming Agenda Consultation.
All IASB members agreed with these decisions.
For the short-term issues, the IASB decided that Issues 5 and 9 in Agenda Paper 12C should be referred to the Interpretations Committee for possible agenda decisions. Issue 11 in Agenda Paper 12C was considered separately through the discussion of Agenda Paper 12D.
Eleven IASB members agreed with this decision and three IASB members disagreed.
The issues identified for possible agenda decisions will be discussed by the Interpretations Committee at its next meeting. The Request for Views that will be issued as part of the forthcoming Agenda Consultation will include a reference to the IFRS 5 concerns raised by the Interpretations Committee.
Clarification of the scope of the disclosure requirements in IFRS 12 Disclosure of Interests in Other Entities (Agenda Paper 12D)
The IASB discussed an issue relating to the interaction between the scope of IFRS 5 and the scope of IFRS 12 that had been submitted to the Interpretations Committee. Specifically, the IASB discussed whether the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, should apply to interests that are classified as held for sale or discontinued operations in accordance with IFRS 5.
The IASB observed that the objective of IFRS 12 would apply to an entity’s interests in other entities regardless of their classification as held for sale or discontinued operations. Consequently, the IASB tentatively decided to clarify the scope of IFRS 12 by specifying that the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, apply to interests that are classified as held for sale or discontinued operations.
The IASB also decided:
- to include this amendment in the Exposure Draft Annual Improvements to IFRS 2014–2016 Cycle; and
- that the proposed amendment should be applied retrospectively.
All fourteen IASB members agreed with these decisions.
The IASB reviewed the due process steps that had been taken to date that relate to the publication of the Exposure Draft Annual Improvements to IFRS 2014–2016 Cycle, including the amendment discussed at this meeting. All fourteen IASB members confirmed that they:
- do not intend to dissent from the publication of Annual Improvements to IFRS 2014–2016 Cycle;
- agree with the proposed comment period of 90 days; and
- are satisfied that the IASB has completed all of the necessary due process steps on the project to date.
The IASB therefore instructed the staff to commence the balloting process for the Exposure Draft.
The IASB expects to issue an Exposure Draft on Annual Improvements to IFRS 2014–2016 Cycle in Q4 of 2015.