Exposure Draft ED/2012/2 Annual Improvements to IFRSs:
2011-2013 Cycle
November 2012

The International Accounting Standards Board (IASB) has published for comment ED/2012/2 Annual Improvements to IFRSs: 2011-2013 Cycle, an exposure draft of proposed amendments to International Financial Reporting Standards.

The ED is part of the IASB’s annual improvements project which provides a streamlined approach for dealing efficiently with a collection of amendments to IFRSs.

The ED proposes the following amendments to the relevant IFRSs:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards
    • Clarifies  that in its first IFRS financial statements, an entity may apply either:
      • an existing and currently effective IFRS; or
      • a new IFRS that is not yet mandatory but permits early application, provided it is applied throughout the periods presented in the first IFRS financial statements.
  • IFRS 3 Business Combinations
    • Clarifies that:
      • the scope of IFRS 3 excludes all types of joint arrangements as defined in IFRS 11 Joint Arrangements; and
      • the scope exception only applies to the financial statements of the joint venture or the joint operation itself.
  • IFRS 13 Fair Value Measurement
    • Clarifies that the portfolio exception in paragraph 52 of IFRS 13 applies to all contracts within the scope of IAS 39 Financial Instruments: Recognition and Measurement or IFRS 9 Financial Instruments, regardless of whether they meet the definitions of financial assets or financial liabilities as defined in IAS 32 Financial Instruments: Presentation.
  • IAS 40 Investment Property
    • Clarifies that determining whether the acquisition of investment property is within the scope of both IFRS 3 Business Combinations and is an investment property as defined in IAS 40 requires the separate application of both Standards.

Comments can be made to the New Zealand Accounting Standards Board (NZASB) addressed to the Chairman, New Zealand Accounting Standards Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to submissions@xrb.govt.nz. Comments can also be made electronically to the IASB website (www.ifrs.org), using the “Comment on a proposal” page.

Comments are due to the NZASB by 4 February 2013 and to the IASB by 18 February 2013.

Read IASB Exposure Draft 2012/2

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