Invitation to comment on IASB Exposure Draft of Annual Improvements to IFRS standards 2015 – 2017 cycle

The IASB has a streamlined process for dealing efficiently with issues related to inconsistencies in the application of Standards and where there is a need to clarify the wording in a Standard. The IASB has published proposed amendments to three Standards for public consultation as part of its annual improvements process.

The Exposure Draft contains proposed amendments to IAS 12 Income Taxes, IAS 23 Borrowing Costs and IAS 28 Investments in Associates and Joint Ventures.

• The proposed amendments to IAS 12 clarify that an entity should account for all income tax consequences of dividends in the same way, regardless of how the tax arises.
• The proposed amendments to IAS 23 clarify that which borrowing costs are eligible for capitalization as part of the cost of an asset in particular circumstances.
• The proposed amendments to IAS 28 clarify that an entity should apply IFRS 9 Financial Instruments to long-term interests in an associate or joint venture to which it does not apply the equity method.

Comments should be supported by specific reasoning and should be submitted in written form. The deadline for comments is 12 April 2017.

Reference:

Exposure Drafts: http://www.ifrs.org/Current-Projects/IASB-Projects/Annual-Improvements/Documents/ED-Annual-Improvements-2015-2017.pdf