Improvements to IFRSs – 2018-2020 Cycle

On 21 May 2019, the IASB published its draft Improvements to IFRSs – 2018-2020 cycle (ED/2019/2). The amendments proposed by the IASB relate to the following standards and topics.

Keywords: Mazars, Thailand, IFRS, IASB

23 July 2019

  • IFRS 1 – First-time Adoption of International Financial Reporting Standards

The amendment proposes to require a subsidiary adopting IFRSs after its parent and that elects to apply paragraph D16(a) to measure cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to IFRSs.

  • IFRS 9 – Financial instruments

The amendment clarifies the fees that an entity should include in the ‘10 per cent’ test for derecognition of financial liabilities. Only fees paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf, would be included in this test.

  • IFRS 16 – Leases

The Board proposes to amend Illustrative Example 13 of IFRS 16 to remove the example of payments from the lessor relating to leasehold improvements incurred by the lessee. In its original form, Illustrative Example 13 was a source of confusion regarding the treatment of lease incentives.

  • IAS 41 – Agriculture

The amendment proposes to remove the requirement in paragraph 22 under which entities must exclude cash flows for taxation when measuring the fair value of a biological asset.

No application date for these amendments is mentioned in the exposure draft. The IASB intends to clarify this after the consultation period. Comments are to be received by 20 August 2019.

The exposure draft can be consulted at the IFRS website