The International Accounting Standards Board (Board) has today issued amendments to IFRS 9 Financial Instruments and to IAS 28 Investments in Associates and Joint Ventures to aid implementation.
The amendments to the financial instruments Standard, IFRS 9, allow companies to measure particular prepayable financial assets with so-called negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met—instead of at fair value through profit or loss.
The amendments to IAS 28 Investments in Associates and Joint Ventures clarify that companies account for long-term interests in an associate or joint venture—to which the equity method is not applied—using IFRS 9.
The Board has also published an example that illustrates how companies apply the requirements in IFRS 9 and IAS 28 to long-term interests in an associate or joint venture.
The IFRS Taxonomy will be updated to reflect the new presentation and disclosure requirements introduced by the amendments to IFRS 9. Consequently, the Board has also published today the Proposed IFRS Taxonomy Update—Prepayment Features with Negative Compensation for public consultation. The comment deadline is 11 December 2017.
Access the documents here (eIFRS Professional/Comprehensive is required to view the amendments):
Prepayment Features with Negative Compensation (Amendments to IFRS 9);
Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28);
Illustrative Example—Long-term Interests in Associates and Joint Ventures; and
Proposed IFRS Taxonomy Update—Prepayment Features with Negative Compensation.
The amendments are effective from 1 January 2019, with early application permitted.
Head of communications, IFRS Foundation
Telephone: +44 (0)20 7246 6960
Technical director, International Accounting Standards Board
Telephone: +44 (0) 20 7246 6902