IASB Publishes Proposals For Amendments Under Annual Improvements Project

by Jason Gorringe, Tax-News.com, London

13 August 2008

The International Accounting Standards Board (IASB) late last week published for public comment an exposure draft of proposed amendments to eight International Financial Reporting Standards (IFRSs) under its annual improvements project.

The proposed amendments reflect issues discussed by the IASB in the project cycle that began last year. The proposals range from guidance added to the Appendix of IAS 18 Revenue on how to determine whether an entity is acting as a principal or as an agent, to changes of wording to clarify the meaning and remove unintended inconsistencies between IFRSs.

The IASB adopted an annual process in 2006 to make necessary, but non-urgent, amendments to IFRSs that will not be included in other projects. By presenting the proposed amendments in a single document rather than as a series of piecemeal changes, the IASB aims to ease the burden for all concerned.

Unless otherwise specified, the proposed effective date for the amendments is for annual periods beginning on or after 1st January 2010, although entities are permitted to adopt them earlier.

The proposed effective date for those amendments arising from the revised IFRS 3 Business Combinations is 1st July 2009 (in line with the effective date for the revised standards on business combinations—IFRS 3 and IAS 27 Consolidated and Separate Financial Statements).

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