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IASB Proposes Annual Improvements for 2019

On May 21st, the International Accounting Standards Board (IASB) proposed four amendments for this year’s improvement consideration of the International Financial Reporting Standards (IFRS). These amendments recommend a modification of the following Standards:

  1. IFRS 1 First-Time Adoption of International Financial Reporting Standards – This proposed amendment simplifies the first-time adoption of IFRS by a subsidiary after the parent company has already adopted the IFRS Standards. The proposed amendment relates to the measurement of cumulative translation differences by permitting the subsidiary to use the amounts reported by the parent for that entity on the consolidated financials.
  2. IFRS 9 Financial Instruments – The proposed amendment clarifies that financial liabilities should be derecognized and a new liability established following significant changes to the terms of the liability. A significant change is determined when fees paid on the liability fluctuate by greater than 10% of the discounted present value of the liability’s remaining cash flows.
  3. IFRS 16 Leases - The IASB proposed clarification of an illustrative example surrounding the treatment of lease incentives provided as part of the leasing standard. This clarification was designed to eliminate potential confusion.
  4. IAS 41 Agriculture – Aligns the fair value measurement requirements with IFRS 13 Fair Value Measurement. Under IAS 41, agricultural entities are currently required to exclude taxation cash flows when assessing fair value measurement. This proposed amendment would remove this industry difference for agricultural entities and permit a number of present valuation techniques, as discussed under IFRS 13, depending on the facts and circumstances. 

The IASB is now accepting written comments on the proposed annual improvements through August 20, 2019.

For more information concerning the International Financial Reporting Standards, please visit the Schneider Downs Our Thoughts On blog or Email us at contactSD@schneiderdowns.com.

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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