4. May 2016
Today, the ASCG has submitted a comment letter to the IFRS IC. In this letter, we comment on a tentative agenda decision on applying IFRS 10 and IFRS 11, taken by the IFRS IC in its March 2016 meeting, and relating to the question of whether or not remeasuring previously held interest when an entity loses control.
We do not agree with the decision by the IFRS IC of deferring the issue and transferring it to the IASB in order to solve it within the project on the equity method, since this would lead to the issue being unresolved for the foreseeable future – although it is acknowledged to be widespread. Further, we reject the argument of a perceived “similarity” between this issue and the sale or contribution of assets issue that is subject of a recent narrow-scope amendment which had been deferred subsequently, leading to both issues being resolved jointly. Instead, we think that the recent question is not an issue depending on the equity method.