News
IASB Issues Amendments to IFRS 9 Financial Instruments, IAS 28 Investments in Associates and Joint Ventures to Aid Implementation
11-Jan-2018
LONDON - The amendments to the financial instruments Standard, IFRS 9, allow companies to measure particular prepayable financial assets with so-called negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met—instead of at fair value through profit or loss.
The amendments to IAS 28 Investments in Associates and Joint Ventures clarify that companies account for long-term interests in an associate or joint venture—to which the equity method is not applied—using IFRS 9.
The Board has also published an example that illustrates how companies apply the requirements in IFRS 9 and IAS 28 to long-term interests in an associate or joint venture.
The IFRS Taxonomy will be updated to reflect the new presentation and disclosure requirements introduced by the amendments to IFRS 9. Consequently, the Board has also published the Proposed IFRS Taxonomy Update—Prepayment Features with Negative Compensation for public consultation. The comment deadline was December 11, 2017.