SCOPA Approves IASB's Periodic Improvements on International Standards (2018-2020)
SOCPA approved the periodic improvements made by IASB for 2018-2020 cycle, whereby periodic and limited improvements are made on the IFRS requirements to facilitate application.
Periodic improvements is an appropriate mechanism to address efficiently with necessary small adjustments to IFSR.
IASB made the following improvements on the following standards:
| Standard |
Edit subject |
| IFRS 1: First-time Adoption of International Financial Reporting Standards |
A subsidiary that applies international standards for the first time |
| IFRS 9 Financial Instruments |
Fees that are within the 10% test for the purpose of de-recognition of financial obligations. |
| IAS 41 Agriculture |
Taxes in fair value measurements. |
The improvment made to IFRS 1 "First-time Adoption of International Financial Reporting Standards" included an exemption for first-time adopters, including the calculation of difference between the amount it reported as cumulative translation differences and the amount reported in its parent’s consolidated financial statements, based on dates of transition to IFRSs.
The improvement made to IFRS 9 "Financial Instruments" included introduction of new application material to clarify the fees that an entity includes when assessing whether the terms of a new financial liability are substantially different from the terms of the original financial liability.
The improvement made to IAS 41 "Agriculture" discussed cash flows for taxation when measuring fair value, as the previous version of the standard would discount after-tax cash flows. This improvement has been made to ensure alignment with fair value measurements in IFRS 13 "fair value measurement".