22 November 2018

Deloitte comments on six IFRS Interpretations Committee tentative agenda decisions

Deloitte has published its comment letters on IFRS Interpretations Committee tentative agenda decisions related to IAS 27, IAS 37, IFRS 9, IFRS 11, and IFRS 15, as published in the September 2018 IFRIC Update.

Issue - IAS 27 — Investment in a subsidiary accounted for at cost — partial disposal

Agenda decision supported?

Yes; although Deloitte does not find the analogies to IAS 28 Investments in Associates and Joint Ventures and to the investment entity requirements of IAS 27 persuasive in terms of the recognition of any difference between cost and fair value when IFRS 9 Financial Instruments is first applied.

Full comment letter

Issue - IAS 27 — Investment in a subsidiary accounted for at cost — step acquisition

Agenda decision supported?

Yes.

Full comment letter

Issue - IAS 37 — Payments relating to taxes other than income tax

Agenda decision supported?

Yes.

Full comment letter

Issue - IFRS 9 — Application of the highly probable requirement in a cash flow hedge relationship

Agenda decision supported?

Yes.

Full comment letter

Issue - IFRS 11 — Liabilities in relation to a joint operator’s interest in a joint operation

Agenda decision supported?

Yes; however, Deloitte believes additional clarity could be added by specifying that (a) in the circumstances described in the tentative agenda decision, the lead operator has primary responsibility for the lease liability; and (b) the Committee did not opine on the accounting for any contractual arrangements which may exist between joint operators in respect of a leased asset.

Full comment letter

Issue - IFRS 15 — Assessment of promised goods or services

Agenda decision supported?

Yes.

Full comment letter

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