IASB exposure draft
The International Accounting Standards Board (IASB) issued an exposure draft of proposed amendments to IFRS 2 Share-based payment and IFRIC 11 IFRS 2 group and treasury share transactions in December 2007.
The proposed amendment intends to clarify that an entity receiving goods or services from suppliers will apply IFRS 2 even if the entity has no obligation to make the share-based cash payments.
On 17 January 2008, the IASB issued an amendment to IFRS 2 to clarify that:
- vesting conditions are service conditions and performance conditions only (i.e. other features of a share-based payment are not vesting conditions)
- all cancellations (as a result of the entity or other parties) should be accounted for similarly
This exposure draft is expected to be issued by the Australian Accounting Standards Board (AASB).
The IASB requests that comments on the exposure draft be received by Monday 17 March.
IFRIC interpretations
The International Financial Reporting Interpretations Committee (IFRIC) issued two draft interpretations entitled:
- D23 Distributions of non-cash assets to owners
- D24 Customer contributions
The purpose of D23 is to enable non-cash assets for distribution to owners to be valued consistently and will therefore be comparable between reporting entities. The draft interpretation requires non-cash assets for distribution to owners to be recognised as the fair value of the asset, even if it differs from the books carrying amount.
D24 proposes a change to an existing accounting treatment in Australia. This draft interpretation requires revenue to be recognised at fair value of the asset contribution over the period of supply to a customer.
The current Australian Accounting Standards Board (AASB) interpretation 1017 Developer and customer contributions for connection to a price-regulated network requires a service provider to recognise the equivalent revenue upfront.
While AASB 1017 covers the same issue, the scope relates to price-regulated networks only. Nonetheless, the AASB plans to withdraw AASB 1017 when D24 is issued.
The two draft interpretations have been approved and issued by the AASB for comment by Australian constituents.
CPA Australia welcomes comments on the draft interpretations, which will help inform CPA Australia about the issues arising in practice.
Comments can be emailed to professionalstandards@cpaaustralia.com.au by Monday 17 March for D24 and Monday 24 March for D23.
Further information
