21. April 2021

ASCG outreach event on IASB Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12 – presentation available

On 20 April 2021, the ASCG, together with representatives from EFRAG, held a public outreach session about the content of the Request for Information published by the IASB as part its Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12 (web-based session).

The event served to discuss the topics preliminary identified by the IASB, which shall be examined in more detail as part of Phase 2 of the Post-implementation Review. The vast majority of the approximately 25 participants shared the preliminary views by the ASCG’s IFRS Technical Committee. Accordingly, IFRS 10 provides a robust framework of principles for assessing whether an investor has obtained control over an investee. However, IFRS Standards lack guidance on some cross-cutting issues that relate to how the scope of the IFRS Standards on consolidation interact with other IFRS standards (such as the accounting for put/call options on non-controlling interests). Further, IFRS Standards still lack guidance on the accounting for some transactions that alter the relationship between an investor and an investee (for example, a change from being a parent to being a joint operator). These transactions should be addressed by the IASB through standard setting, as well. As regards to the request expressed by some users for additional disclosures in accordance with IFRS 12, the participants of the event rendered a critical view. Additional disclosure requirements should be scrutinised more in terms of why users need the information to be disclosed and what the information is intended to help users do.

The slide deck of the session is now available at the ASCG website (in German). The report will be available soon.