The IASB has issued Transfers of Investment Property, an exposure draft of proposed amendments to IAS 40, and its exposure draft of proposed Annual Improvements to IFRSs 2014-2016 Cycle, open for comment until March 18, 2016 and February 17, 2016 respectively.
IAS 40.57 currently lists some circumstances in which an entity makes transfers to or from investment property, but doesn’t address whether these include transferring a property under construction or development that was previously classified as inventory, when there is an evident change in its use. The IASB proposes to change that paragraph, to state that an entity shall transfer a property to or from investment property when, and only when, there is a change in use of a property supported by evidence that a change in use has occurred; and to re-characterise the list of circumstances as non-exhaustive examples of evidence that a change in use has occurred (it might currently be taken as an exhaustive list). So no big deal there. They propose that this change, if and when effective, would be applied retrospectively.
The most notable (which is saying very little) of the proposed annual improvements addresses some lack of clarity about whether the requirements of IFRS 12 Disclosure of Interests in Other Entities apply to interests that are classified as held for sale, as held for distribution to owners or as discontinued operations in accordance with IFRS 5. It proposes clarifying that the requirements do apply for the most part, because an entity continues to be exposed to risks and effects associated with these interests, regardless of their classification. This would exclude however (as is already specified in the standard) the requirements to disclose summarized financial information for those entities.
IAS 28 currently specifies that when an investment in an associate or a joint venture is held by, or is held indirectly through, an entity that is a venture capital organization, or a mutual fund, unit trust and similar entities including investment-linked insurance funds, the entity may elect to measure investments in those associates and joint ventures at fair value through profit or loss in accordance with IFRS 9. The IASB proposes adding that the entity makes this election on an investment-by-investment basis for each investment in an associate or joint venture, upon initially recognizing each investment. Similarly, the standard currently specifies that if an entity that is not itself an investment entity has an interest in an associate or joint venture that is an investment entity, the entity may, when applying the equity method, elect to retain the fair value measurement applied by that investment entity associate or joint venture to its interests in subsidiaries. The IASB proposes adding that the entity makes this election separately for each investment entity associate or joint venture.
The only other proposed improvements apply to IFRS 1, to remove some of the short-term exemptions currently made available to first-time adopters. These allow first-time adopters the same transition relief allowed by various standards, or amendments to standards, for existing IFRS preparers. But these standards and amendments have now been in place for long enough that the transition provisions are no longer an issue.
Well, I have a self-imposed rule that these posts should always be at least 800 words long, but in this case, try as I might, I can’t think of a way to stretch those minor items out any further. So, continuing my periodic social media research project, please enjoy these intriguing recent real-life references to IFRS on Twitter, presented here in their original unedited form:
IFRS 9 is like my love life. Just when I think I understand what’s going on… I don’t.
=_= trying to find the lyrics to this song and it’s bugging me sooo bad. These studying distractions. If only I pursued IFRS like this
blame the ifrs 15. I just realised the whole point of studying *accounting*, that is- BE PREPARED TO SUFFER. (plus nobody ever likes us)
Partner IFRS training! Will need a red bull later. Bring it on!
Breathless IFRS cheerleaders & US GAAP fundamentalists: the 2 hottest accounting-related Halloween costumes of 2015
The carrying amount of the damned, for in accordance with IFRS 3, which generally keep him alive and sane.
trees don’t deserve to die for pre and post IFRS bullshit presentations honestly
We don’t buy no drinks at the bar We pop… open our IFRS cos we got that study leave Let me hear you say aaaaaaaah (out of fear)
there is no chilling with IFRS, it is a serious matter we give our all to.
When I look at my IFRS & shits highlighted & i’m like “uhm when did I read this”
Me approaching IFRS 15: I don’t like you. Nobody likes you. IAS 18 will forever have my heart
(And this is me) Well, I think that added some colour and substance!
The opinions expressed are solely those of the author