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10 February 2009

EFRAG consults on its draft comment letter to IFRIC 9 and IFRIC 16


EFRAG believes that additional to the proposal, acquisitions of associates should be excluded from the scope of IFRIC 9. On IFRIC 16 the effective date requirements need further clarification.

EFRAG has issued its draft comment letter on the Exposure Draft of proposed amendments to IFRIC 9 - Reassessment of Embedded Eerivatives and IFRIC 16 - Hedges of a Net Investment in a Foreign Operation.

 

Proposed amendments to IFRIC 9:  

EFRAG agrees that the scope of IFRIC 9 is amended to make it clear that IFRIC 9 does not apply to embedded derivatives in contracts acquired in a business combination, a combination of entities under common control or the formation of joint ventures.

 

However, EFRAG also believes that acquisitions of associates should be excluded from the scope of IFRIC 9. We agree that the amendment should be applied prospectively for annual periods beginning on or after 1 July 2009.

 

Proposed amendments to IFRIC 16:

EFRAG agrees with the proposed amendment to IFRIC 16. However, the effective date requirements for this amendment need further clarification.

 

Deadline for comments is 25 February 2009.

 

Draft comment letter

IASB consultation here

 



© EFRAG - European Financial Reporting Advisory Group

Documents associated with this article

EFRAG draft comment letter on amendments to IFRIC 9 and IFRIC 16.pdf


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