14. July 2016

ASCG comments on tentative and final agenda decisions taken by the IFRS IC

Today, the ASCG has submitted a comment letter to the IFRS IC. In this letter, we comment three tentative agenda decisions taken by the IFRS IC in its May 2016 meeting, one of which refers to our own submission of an IFRIC 12 issue. We agree with this decision and the related discussion, as it reflects the structure of the set of questions we have raised. However, we do not agree with the two other tentative decisions. The decision on the IAS 32 issue results in an ongoing lack of clarity for preparers. Similar to earlier but related questions, a clarification by the relevant current IASB project cannot be expected for the foreseeable future. The decision on IAS 39 regarding the derecognition test is not justifying, since the answer that has been given should better be given by way of an interpretation or an amendment of the standard.

Further, we do not agree with the final decision on IAS 39 / IFRS 9 regarding modified financial instruments. We point to the need for a timely interpretation of the requirements on modifications by the IFRS IC and the IASB