The International Accounting Standards Board (IASB) has published public comment proposals to amend IFRIC 9 Reassessment of Embedded Derivatives and IFRIC 16 Hedges of a Net Investment in a Foreign Operation.
The International Financial Reporting Interpretations Committee (IFRIC) develops guidance to promote consistent practice.
The proposed amendment to IFRIC 9 is a consequential amendment that became necessary as a result of the changed definition of a business combination in IFRS 3 issued in January 2008. 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.
To eliminate an impediment for users the amendment to IFRIC 16 proposes to remove the restriction on the entity that can hold hedging instruments.
The exposure draft is a short document proposing urgent but relatively narrow amendments for which the Board believes that there is likely to be a broad consensus. Therefore, the IASB approved a 30-day comment period.
The proposals are set out in an exposure draft Post-implementation Revisions to IFRIC Interpretations, on which the IASB invites comments by 2 March 2009.