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Exposure Draft Annual Improvements to IFRS Standards 2015 – 2017 Cycle
Apr 12, 2017

Crowe Horwath International is pleased to respond to the International Accounting Standards Board Exposure Draft Annual Improvements to IFRS Standards 2015 - 2017 Cycle. 

Our detailed comments are presented in the appendix to this letter.

We trust that our comments are of assistance to the completion of this project.

Yours faithfully
David Chitty
International Accounting and Audit Director

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Appendix 1 - Responses to Questions for Respondents in Exposure Draft Annual Improvements to IFRS Standards 2015 - 2017 Cycle

Question

Response

Question 1-Proposed amendments (please answer individually for each proposed amendment)

 

Do you agree with the Board's proposal to amend the Standards in the manner described in the Exposure Draft?

If not, why, and what alternative do you propose?

 

IAS 12 Income Taxes

We agree with the proposed amendment, which should ensure consistent treatment across different jurisdictions.

IAS 23 Borrowing Costs

We agree with the proposed amendment, which provides helpful clarification of the meaning of the standard.

IAS 28 Investments in Associates and Joint Ventures

We agree with the proposed amendment, which provides helpful clarification. We note the alternative view presented and whilst we are supportive of the amendment we do think that it would be useful for the Board to specify the types of interest that form part of the net investment. An example would also assist preparers understand how to apply the impairment models of IAS 28 and IFRS 9 to an investment which, although accounted for separately as a net investment and a long term interest, may well be managed together. Without wishing to delay the amendment we suggest further consideration is given to these areas.

 

 

Question 2-Effective date of the proposed amendments to IAS 28 Investments in Associates and Joint Ventures

 

The Board is proposing an effective date of 1 January 2018 for the proposed amendments to IAS 28. The reasons for that proposal are explained in paragraphs BC7-BC9 of the Basis for Conclusions on the proposed amendments to IAS 28.

Do you agree with the effective date for those proposed amendments? If not, why, and what alternative do you propose?

We agree with the proposed effective date, which should be aligned to the effective date of IFRS 9.