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Annual Improvements to IFRS Standards 2015-2017 Cycle


Exposure Draft

On 12 January 2017, the IASB issued the ED/2017/01 Annual Im​​​​provements to IFRS Standards 2015-2017 Cycle. This ED proposed the amendments regarding IAS 12 Income Taxes, IAS 23 Borrowing Costs, and IAS 28 Investments in Associates and Joint Ventures.

On 19 April 2017, in its final comment letter, EFRAG broadly agreed with most of the proposals of the ED.

At its May 2017 meeting, the IASB decided to separately finalise the amendments to IAS 28. More details are available on the related project site: IAS-28 Amendments Long​-term Interests in Associates and Joint Ventures.

In September 2017, the IASB decided to finalise the remaining two amendments together with the amendments regarding clarification of accounting for previously held interests in joint arrangements. Originally, the latter amendments were proposed in Exposure Draft ED/2016/1 Definition of a Business and Accounting for Previously Held Interests. EFRAG’s comment letter on that ED is available in the documents’ part of the project site related to IFRS 3 Amendments - Definition of a Business.

The Amendm​​ents

In December 2017, the IA​​SB published Annual Improvements to IFRS Standards 2015–2017 Cycle comprising of the following amendments:

  • IFRS 3 and IFRS 11 - clarifying that a transaction of obtaining control of a business that is joint operation, is a business combination achieved in stages and the acquirer should apply the relevant requirements of IFRS 3, including remeasuring of the entire previously held interest in the joint operation; clarifying also that the acquirer should not remeasure the previously held interest in transactions of obtaining joint control of a business that is a joint operation;
  • IAS 12 - clarifying that the income tax consequences of payments on financial instruments classified as equity should be recognised according to where the past transactions or events that generated distributable profits has been recognised
  • IAS 23 - clarifying that, when a qualifying asset is ready for its intended use or sale, an entity treats any outstanding borrowing made specifically to obtain that qualifying asset, as part of the funds that it has borrowed generally.

After considering the feedback received in response to its consultation, EFRAG issued its Final Endorsement Advice (FEA) on 21 March 2018 reiterating its assessment that Annual Improvements to IFRS Standards 2015-2015 Cycle meets all technical endorsement criteria of the IAS Regulation and is conducive to the European public good. EFRAG therefore recommended its endorsement.​

On 14 March 2019, C​​ommission Regulation (EU) 2019/412 amended Regulation (EC) No 1126/2008 regarding Annual Improvements to IFRS Standards 2015–2017 Cycle​. 

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