United States

IASB issues minor changes to IFRS

FINANCIAL REPORTING INSIGHTS  | 

The International Accounting Standards Board (IASB) recently issued Annual Improvements to IFRS Standards 2014 – 2016 Cycle, which made narrow-scope amendments to four International Financial Reporting Standards (IFRS) as follows:

  • IFRS 3, Business Combinations – to clarify that a company should remeasure its previously held interest in a joint operation when it obtains control of the business
  • IFRS 11, Joint Arrangements – to clarify that a company should not remeasure its previously held interest in a joint operation when it obtains joint control of the business
  • International Accounting Standard (IAS) 12, Income Taxes – to clarify that a company should account for all income tax consequences of dividend payments in the same way
  • IAS 23, Borrowing Costs – to clarify that a company should treat as part of general borrowings any borrowing originally made to develop an asset when the asset is ready for its intended use or sale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 January 1, 2019 with early application permitted.