IASB Proposed Deferment of Suggested Changes in IFRS 10 and IAS 28

By | August 14, 2015
(Last Updated On: August 13, 2015)

IASB Proposed Deferment of Changes Previously Suggested in IFRS 10 and IAS 28

International Accounting Standard Board (IASB), the independent body of IFRS foundation and responsible for developing and promoting International Financial Reporting Standards (IFRS), has proposed deferment of changes previously suggested in IFRS 10 ‘Consolidated Financial Statements’ and IAS 28 ‘Investment in Associates and Joint Ventures’ for an indefinite period. Earlier the changes in IFRS 10 and IAS 28 were proposed to be applicable from January, 2016.

Following changes were proposed in IFRS 10 and IAS 28:-

(a) If an investor transfers any business to its associates or joint venture then entire profit or loss arising on such transfer should be recognised in the books of investor; and

(b) In case transfer, by an investor to its associates or joint venture, does not contain any business then investor should recognise partial profit or loss on transfer of asset. The amount of profit or loss not recognised should be adjusted against the cost of investment.

However, as per IASB, companies have option to follow changes proposed in IFRS 10 and IAS 28 with effect from January, 2016.

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