ANNEX
INTERNATIONAL FINANCIAL REPORTING STANDARDS
IAS 39 | Amendments to International Accounting Standard (IAS) 39 Financial Instruments: Recognition and Measurement — Transition and Initial Recognition of Financial Assets and Financial Liabilities |
SIC 12 | IFRIC Amendment to SIC 12 Scope of SIC 12; Consolidation — Special Purpose Entities |
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Amendments to IAS 39 Financial Instruments: Recognition and Measurement
In the Standard, paragraph 107A is added.
EFFECTIVE DATE AND TRANSITION
107A. | Notwithstanding paragraph 104, an entity may apply the requirements in the last sentence of paragraph AG76, and paragraph AG76A, in either of the following ways: prospectively to transactions entered into after 25 October 2002; or prospectively to transactions entered into after 1 January 2004. |
In Appendix A, Application Guidance, paragraph AG76A is added.
Application Guidance
Measurement (paragraphs 43 to 70)
No Active Market: Valuation Technique
…
AG76A. | The subsequent measurement of the financial asset or financial liability and the subsequent recognition of gains and losses shall be consistent with the requirements of this Standard. The application of paragraph AG76 may result in no gain or loss being recognised on the initial recognition of a financial asset or financial liability. In such a case, IAS 39 requires that a gain or loss shall be recognised after initial recognition only to the extent that it arises from a change in a factor (including time) that market participants would consider in setting a price. |
Appendix
Amendments to IFRS 1
The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies IFRS 1 for an earlier period, these amendments shall be applied for that earlier period.
A1. IFRS 1 First-time Adoption of International Financial Reporting Standards is amended as described below.
In paragraph 13, subparagraphs (j) and (k) are amended, and subparagraph (l) inserted, as follows:
(j) | decommissioning liabilities included in the cost of property, plant and equipment (paragraph 25E); |
(k) | leases (paragraph 25F); and |
(l) | fair value measurement of financial assets or financial liabilities at initial recognition (paragraph 25G). |
After paragraph 25F a new heading and paragraph 25G are inserted as follows:
Fair value measurement of financial assets or financial liabilities
25G | Notwithstanding the requirements of paragraphs 7 and 9, an entity may apply the requirements in the last sentence of IAS 39 paragraph AG76, and paragraph AG76A, in either of the following ways: prospectively to transactions entered into after 25 October 2002; or prospectively to transactions entered into after 1 January 2004. |
International Financial Reporting Interpretations Committee
IFRIC
IFRIC AMENDMENT TO SIC-12
Scope of SIC-12
Consolidation — Special Purpose Entities
REFERENCES
IAS 19 Employee Benefits |
IAS 32 Financial Instruments: Disclosure and Presentation |
IFRS 2 Share-based Payment |
SIC-12 Consolidation — Special Purpose Entities |
BACKGROUND
1. | Until this Amendment becomes effective, SIC-12 excludes from its scope post-employment benefit plans and equity compensation plans (SIC-12.6). Until IFRS 2 becomes effective, such plans are within the scope of IAS 19 (as amended in 2002). |
2. | IFRS 2 is effective for annual periods beginning on or after 1 January 2005. IFRS 2 will amend IAS 19 by: removing from its scope employee benefits to which IFRS 2 applies, and removing all references to equity compensation benefits and equity compensation plans. |
3. | Furthermore, IAS 32 requires treasury shares to be deducted from equity. When IFRS 2 becomes effective, it will amend IAS 32 to state that paragraphs 33 and 34 of IAS 32 (relating to treasury shares) shall be applied to treasury shares purchased, sold, issued or cancelled in connection with employee share option plans, employee share purchase plans, and all other share-based payment arrangements. |
ISSUES
4. | The first matter addressed by this Amendment is the inclusion of equity compensation plans within the scope of SIC-12. |
5. | The second matter addressed by this Amendment is to exclude from the scope of SIC-12 other long-term employee benefit plans. Until the Amendment becomes effective, SIC-12 does not exclude other long-term employee benefit plans from its scope. However, IAS 19 requires those plans to be accounted for in a manner similar to the accounting for post-employment benefit plans. |
AMENDMENT
6. | Paragraph 6 of SIC-12 is amended as follows. This Interpretation does not apply to post-employment benefit plans or other long-term employee benefit plans to which IAS 19 applies. |
EFFECTIVE DATE
7. | An entity shall apply this Amendment for annual periods beginning on or after 1 January 2005. If an entity applies IFRS 2 for an earlier period, this amendment shall be applied for that earlier period. |