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The topics the IFRS® Discussion Group plans to consider, in addition to routine updates, are outlined below. Although current at the date prepared (August 20, 2019), this agenda is subject to change. The topics presented below may be discussed by the Group in a different order.
IFRS 16: Sale-leaseback Transaction with Variable Payments
- Consider a sale-leaseback transaction with variable payments. Discuss approaches to calculating the proportion of the asset retained and the recognition and measurement of the right-of-use asset, lease liability, and the deferral of the gain.
IFRS 16 and IAS 7: Cash Flow Presentation of Sale-leaseback Transactions
- Discuss the presentation of sales proceeds received by the seller-lessee on its statement of cash flows for a sale-leaseback transaction. Consider whether the entire sales proceeds should be presented as cash flows from investing activities or a portion of the proceeds should be presented as cash flows from financing activities.
IFRS 16 and IAS 37: Variable Lease Payments and Onerous Lease Provisions
- Consider a lease contract where a lessee elected not to separate lease and non-lease components. Discuss whether the lessee should assess the lease contract for onerous lease provisions under IAS 37.
IFRS 16, IAS 16, and IAS 23: Timing of Right of Use Asset Depreciation and IAS 23 Capitalization
- Consider a land lease with the sole purpose of constructing a manufacturing facility. Discuss the timing of Right of Use (ROU) asset depreciation. Also, assuming the manufacturing facility is a “qualifying asset” under IAS 23, discuss whether the depreciation cost associated with the land lease can be capitalized to the manufacturing facility during the construction period.
IFRS 9 and IAS 39: IBOR Reform and Impacts on Financial Reporting
- Consider current developments in the IBOR Reform. Discuss potential Phase 2 financial reporting issues from the IBOR Reform, such as debt modification and extinguishment of an instrument, from the perspective of a corporate borrower.
IFRS 3: Application Issues from an Asset Acquisition
- Discuss the application issues that arise when the acquisition of (net) assets is determined to be an asset acquisition (e.g., determining the cost of the acquired assets, and the allocation thereof).
IFRS 2: Share-based Payments for an Asset Acquisition
- Consider a scenario where a company issues multiple financial instruments in exchange for assets of another company that do not comprise a business. Discuss whether any of the financial instruments issued are in scope of IFRS 2. Also consider whether a contingent payment should be considered as part of the cost of the assets acquired.
IAS 32 and IFRS 9: Allocating Transaction Price to Multiple Elements of a Transaction Involving Warrants
- Consider various scenarios where an entity issues a unit comprising either a share or debt and a warrant. Discuss methods the entity can use to allocate transaction price to the multiple elements of the transaction.
This meeting may be eligible for Continuing Professional Development (CPD) hours. We encourage you to connect with your CPA provincial body regarding potential CPD hours.
Virtual observers tuning into the Group meeting via livestream will see and hear the discussion of Group members, as well as both the visuals and audio of any external presenters, in real-time along with in-person observers. The video recordings will be available for you to watch the next day after the meeting and will remain accessible for one week. Afterwards, the archived audio recording of the full discussions will be available on our website.