Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23
As part of its process to make non-urgent but necessary amendments to IFRS, the IASB has issued the Annual Improvements to IFRS Standards 2015–2017 Cycle.
The amendments are effective for annual reporting periods beginning on or after 1 January 2019 with earlier application permitted.
|The amendments...||KPMG Insight|
|IFRS 3 Business Combinations and IFRS 11 Joint Arrangements|
||In addition to clarifying when a previously held interest in a joint operation is remeasured, the amendments also provide further guidance on what constitutes the previously held interest. This is the entire previously held interest in the joint operation.|
|IAS 12 Income Taxes|
||Although the amendments provide some clarifications, they don’t attempt to address the underlying question – i.e. how to determine if a payment represents a distribution of profits. Therefore, challenges are likely to remain when determining whether to recognise the income tax on some instruments in profit or loss or in equity.|
|IAS 23 Borrowing Costs|
Depending on an entity’s current policy, the proposed amendments may result in more borrowings being included in the general borrowings pool.
Whether it will result in more or less borrowings being capitalised during a period will depend on:
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