Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

BACKGROUND

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures relating to the sale or contribution of assets between an investor and its associate or joint venture.

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The objective of the project is to address an inconsistency between the requirements in IFRS 10 and IAS 28 in dealing with the sale or contribution of a subsidiary by an investor to an associate or joint venture.

The AcSB is participating in the activities of the project to ensure that Canadian entities’ financial reporting needs are considered by the IASB. The amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting International Financial Reporting Standards (IFRSs) for publicly accountable enterprises.

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PROJECT NEWS

Final Amendment – Effective Date of Amendments to IFRS 10 and IAS 28
December 22, 2015. The IASB has issued an amendment deferring indefinitely the effective date of the narrow-scope amendment, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. Earlier application of the amendments is still permitted.

FYI Article – Amendments to IFRS 10 and IAS 28:  Effective Date Is Being Postponed!
November 26, 2015. Amendments are expected to be issued by the IASB by the end of the year that defer indefinitely the effective date of the amendments to IFRS 10 and IAS 28.  This means that entities can wait to apply the amendments to IFRS 10 and IAS 28.

AcSB Response – Effective Date of Amendments to IFRS 10 and IAS 28
On October 1, 2015, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in August 2015. The letter supports the proposal to defer indefinitely the effective date of the narrow-scope amendment, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, while retaining the ability for entities to apply the amendments earlier. Read the AcSB letter posted by the IASB.

Final Amendments – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
September 15, 2014. The IASB has issued narrow-scope amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures to address an inconsistency between requirements in IFRS 10 and IAS 28. The amendments are effective for annual periods beginning on or after January 1, 2016 with earlier application permitted.

AcSB Response – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Proposed Amendments to IFRS 10 and IAS 28))
On April 9, 2013, the AcSB submitted a comment letter to the IASB’s Exposure Draft issued in December 2012. The letter supports the proposals, which address the inconsistency that exists between the requirements in IFRS 10 and IAS 28 in dealing with the sale or contribution of a subsidiary by an investor to an associate or joint venture. Read the AcSB letter posted by the IASB.

AcSB Exposure Draft – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Proposed amendments to IFRS 10 and IAS 28)
January 29, 2013.  The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Canadian stakeholders are encouraged to submit their comments, on the form provided, by April 23, 2013.

Exposure Draft – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Proposed amendments to IFRS 10 and IAS 28)
December 17, 2012. The IASB has issued an Exposure Draft proposing amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. Canadian stakeholders are encouraged to submit their comments to the IASB by April 23, 2013.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.