Proposed amendments to IFRS 8 open for comment until 31 July 2017

On 29 March 2017, the IASB published an exposure draft aimed at improving the disclosure requirements for operating segments in the wake of the post-implementation review (PIR) of IFRS 8. The PIR confirmed that the Standard generally functions well, but some areas could benefit from improvements, for example to clarify and emphasise the criteria that must be met before two operating segments may be aggregated, to require companies to disclose the title and role of the person or group that performs the function of the chief operating decision maker, etc.

For more information:

Public consultation on disclosure issues open for comment until 2 October 2017

On 30 March 2017, the IASB published a discussion paper (DP) aimed at developing clear principles governing what, how and where information should be disclosed in the financial statements so as to improve the information provided to users of financial statements. The DP could lead to amendments to IAS 1, or to the development of a new general disclosure Standard.

For more information:


The following is a summarised update on some of the main discussions or tentative decisions taken by the IC at its meeting on 14-15 March 2017.

For more detailed and comprehensive information on the IC’s discussions:

  • Applying IFRS 1, a subsidiary that becomes a first-time adopter of IFRS later than its parent is not permitted to recognise cumulative translation differences on its foreign operations at the amount that would be included in the parent’s consolidated financial statements, based on the parent’s date of transition to IFRS. Such cumulative translation differences are recognised either at zero or on a retrospective basis at the subsidiary’s own date of transition to IFRS. 
  • The IC clarified that IAS 12 applies to amounts payable or receivable for interest and penalties that are determined to be income taxes by the entity; otherwise, IAS 37 applies to those amounts.
  • Applying IAS 19 to determine the discount rate, an entity with post-employment benefit obligations denominated in a particular currency (e.g. if the entity operates in a country that has adopted another currency as its official or legal currency) assesses the depth of the market in high quality corporate bonds (HQCB) denominated in that currency, without limiting this assessment to the market or country in which it operates, but also considers other markets or countries in which HQCB denominated in that currency are issued.
  • When calculating basic earnings per share (EPS) under IAS 33, an entity must adjust profit or loss attributable to ordinary shareholders for the portion of any tax benefit arising from the hypothetical distribution of profit to participating equity holders.


The following is a summarised update on the main tentative decisions taken by the IASB at its meeting on 21-22 March 2017.

For more detailed and comprehensive information on the IASB’s discussions:                                                                 

Primary Financial Statements (discussion paper or exposure draft to be issued in 2017)

  • Requiring the presentation in the statement(s) of financial performance of (i) an earnings before interest and tax (EBIT) subtotal, and (ii) a management operating performance measure, rather than seeking to define operating profit, should continue to be explored.
  • The Board should develop general guidance on classification, aggregation and disaggregation in the financial statements.

Revised Conceptual Framework (final due H2/2017)

  • Entities that develop accounting policies for regulatory account balances by reference to the Framework should continue doing so until they apply the future Standard on rate-regulated activities. They are to be prohibited from applying the amendment to paragraph 11 of IAS 8 to both existing and new accounting policies for regulatory account balances.
  • A regulatory account balance will be defined as the balance of any expense (or income) account that is not recognised as an asset or a liability in accordance with IFRS Standards, and that is (expected to be) included by the rate regulator as defined in IFRS 14 in establishing the rate(s) that can be charged to customers.

Other topics discussed for which no major decisions were made

  • Financial Instruments with Characteristics of Equity: application of the Gamma approach[1] to the classification of derivatives on non-controlling interests with an exercise price denominated in a foreign currency, summary of interactions of the Gamma approach with other IFRS Standards and projects, and due process (discussion paper expected end 2017).
  • Wider Corporate Reporting: the Board is to consider playing a more active role (e.g. revise and update its Practice Statement Management Commentary) and doing further research
  • Discount rates—present value measurements: a Research Summary is to be issued by Q3/2017 on the research project findings but without public consultation.                                                                                                                


31 July 2017ED/2017/2 - Improvements to IFRS 8 Operating Segments (Proposed amendments to IFRS 8 and IAS 34)
2 October 2017DP/2017/1 - Disclosure Initiative—Principles of Disclosure



On 11 April 2017, RSM International submitted a letter of comment to the IASB on ED/2017/1 Annual Improvements to IFRS Standards 2015–2017 Cycle:

[1] The Gamma model distinguishes claims between liabilities and equity based on the timing of transfer of the economic resources and on how the amount of the claim is determined: equity is an obligation to transfer economic resources only at liquidation, and for a residual amount; a liability is an obligation to transfer economic resources at particular points in time other than at liquidation, or for a specified amount independent of the entity’s economic resources.