Responses to IASB Documents for Comment

IFRS 11 Joint Arrangements

Exposure Draft – Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11) – June 2016

On October 31, 2016, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in June 2016. Overall, the letter agrees with the narrow-scope amendments to IFRS 3 Business Combinations and IFRS 11 Joint Arrangements. The letter commends both the IASB and the FASB for taking action to support the interpretation of the standards on business combinations (i.e., IFRS 3 and Proposed Accounting Standards Update No.2015-330 Business Combinations (Topic 805)) that will result in a more consistent application globally. The letter encourages both Boards to seek high-quality solutions that will result in more comparable financial reporting outcomes in the U.S. and globally. Accordingly, the letter provides some recommendations to help achieve this goal. Although the letter agrees with the proposed amendments to IFRS 11, it also expresses concern over addressing the remeasurement of previously held interests for changing ownership interests on a transaction-by-transaction basis, rather than holistically. Read the AcSB letter posted by the IASB.

Exposure Draft – Acquisition of an Interest in a Joint Operation (Proposed amendments to IFRS 11) – December 2012

On April 9, 2013, the AcSB submitted a comment letter to the IASB’s Exposure Draft issued in December 2012. The letter supports the proposal that a joint operator should account for the acquisition of an interest in a joint operation, in which the activity of the joint operation constitutes a business by applying IFRS 3 Business Combinations and other IFRSs, and disclose the relevant information specified in those IFRSs for business combinations. Read the AcSB letter posted by the IASB.