The International Accounting Standards Board issued the Annual Improvements to IFRS Standards 2015–2017 Cycle, which makes narrow-scope amendments to four IFRS Standards.
Annual improvements refer to interpretations that are minor or narrow in scope, clarifying the wording of a standard or correcting relatively minor oversights or conflics between existing requirements.
The four amendments are:
- IFRS 3: Business Combinations - Clarification that a company remeasures its previously held interest in a joint operation when it obtains control of the business.
- IFRS 11: Joint Arrangement - Clarification that a company does not remeasure its previously held interest in a joint operation when it obtains joint control of the business.
- IAS 12: Income Taxes - Clarification that a company accounts for all income tax consequences of dividend payments in the same way.
- IAS 23: Borrowing Costs - Clarification that a company treats as part of general borrowings any borrowing originally made to develop an asset when the asset is ready for its intended use or sale.
The amendments are effective from January 1, 2019, with early applications permitted.