02 February 2009

IASB consults on amendments to IFRIC 9 and 16 Interpretations

On IFRIC 9 the Board proposes to exclude embedded derivatives resulting from the change of the definition of a business combination in IFRS 3. The amendment to IFRIC 16 proposes to remove the restriction on the entity that can hold hedging instruments.

The IASB published its proposals to amend IFRIC 9 - Reassessment of Embedded Derivatives and IFRIC 16 - Hedges of a Net Investment in a Foreign Operation.

 

Proposed amendments:

IFRIC 9: The Board proposes to exclude embedded derivatives in contracts acquired in combinations of entities or business entities under common control and in the formation of joint ventures from the scope of the Interpretation. The proposed effective date is annual periods beginning on or after 1 July 2009.

 

IFRIC 16: Allow entities to designate as a hedging instrument in a hedge of a net investment in a foreign operation an instrument that is held by the foreign operation that is being hedged. The proposed effective date is annual periods beginning on or after 1 October 2008.

 

Deadline for consultation is 2 March 2009.

 

Press release

Exposure draft

 

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