International
This amends the following standards:
IFRS 3 - Reference to the Conceptual Framework
The amendments are effective for business combinations for which the date of acquisition is on
or after the beginning of the first annual period beginning on or after 1 January 2022. Early
application is permitted if an entity also applies all other updated references (published together
with the updated Conceptual Framework) at the same time or earlier.
The amendments update an outdated reference to the Conceptual Framework in IFRS 3 without
significantly changing the requirements in the standard.
The changes in Reference to the Conceptual Framework (Amendments to IFRS 3) are as
follows:
The amendments in IAS 16 are effective for annual periods beginning on or after 1 January
2022. Early application is permitted.
IAS 16 specifies that the cost of an asset includes any costs attributable to bringing the asset to
the location and condition necessary for it to be capable of operating in the manner intended by
management. One example of these directly attributed costs mentioned in IAS 16 is the cost of
testing whether the asset is functioning properly.
The amendments prohibit a company from deducting from the cost of property, plant and
equipment amounts received from selling items produced while the company is preparing the
asset for its intended use. Instead, a company will recognise such sales proceeds and related cost
in profit or loss.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
IAS 37 - Onerous contracts: Cost of fulfilling a contract
The amendments in IAS 37 are effective for annual periods beginning on or after 1 January
2022. Early application is permitted.
The amendment specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate
directly to the contract’. Costs that relate directly to a contract can either be incremental costs of
fulfilling that contract (examples would be direct labour, materials) or an allocation of other
costs that relate directly to fulfilling contracts (an example would be the allocation of the
depreciation charge for an item of property, plant and equipment used in fulfilling the contract).
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
• IFRS 1 – Paragraph D16(a) of IFRS 1 First-time Adoption of International Financial Reporting Standards allows subsidiaries that become a firsttime adopter later than its parent to measure its
assets and liabilities at the carrying amounts that would be included in the parent’s consolidated
financial statements.
The amendment permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure
cumulative translation differences using the amounts reported by its parent, based on the
parent’s date of transition to IFRSs.
The amendment is effective for annual periods beginning on or after 1 January 2022. Earlier
application is permitted.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
• IFRS 9 – The amendment clarifies which fees an entity includes when it applies the ‘10 per cent’
test in IFRS 9 in assessing whether to derecognise a financial liability. An entity includes only
fees paid or received between the entity (the borrower) and the lender, including fees paid or
received by either the entity or the lender on the other’s behalf.
The amendment is effective for annual periods beginning on or after 1 January 2022. Earlier
application is permitted. The amendment is applied prospectively to modifications and
exchanges that occur on or after the date the entity first applies the amendment.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
• IFRS 16 – The amendment removes Illustrative Example 13 of IFRS 16 Leases for the payments
from the lessor relating to leasehold improvements. The example does not explain clearly
enough the conclusion as to whether the reimbursement would meet the definition of a lease
incentive.
The amendment to IFRS 16 only regards an illustrative example,therefore, no effective date is
stated.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
• IAS 41 – The amendment removes the requirement in paragraph 22 of IAS 41 for entities to
exclude taxation cash flows when measuring the fair value of a biological asset using a present
value technique.
The amendment is effective for annual periods beginning on or after 1 January 2022. Earlier
application is permitted. The amendment is applied prospectively, i.e. for fair value
measurements on or after the date an entity initially applies the amendment.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
assets and liabilities at the carrying amounts that would be included in the parent’s consolidated
financial statements.
The amendment permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure
cumulative translation differences using the amounts reported by its parent, based on the
parent’s date of transition to IFRSs.
The amendment is effective for annual periods beginning on or after 1 January 2022. Earlier
application is permitted.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
• IFRS 9 – The amendment clarifies which fees an entity includes when it applies the ‘10 per cent’
test in IFRS 9 in assessing whether to derecognise a financial liability. An entity includes only
fees paid or received between the entity (the borrower) and the lender, including fees paid or
received by either the entity or the lender on the other’s behalf.
The amendment is effective for annual periods beginning on or after 1 January 2022. Earlier
application is permitted. The amendment is applied prospectively to modifications and
exchanges that occur on or after the date the entity first applies the amendment.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
• IFRS 16 – The amendment removes Illustrative Example 13 of IFRS 16 Leases for the payments
from the lessor relating to leasehold improvements. The example does not explain clearly
enough the conclusion as to whether the reimbursement would meet the definition of a lease
incentive.
The amendment to IFRS 16 only regards an illustrative example,therefore, no effective date is
stated.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
• IAS 41 – The amendment removes the requirement in paragraph 22 of IAS 41 for entities to
exclude taxation cash flows when measuring the fair value of a biological asset using a present
value technique.
The amendment is effective for annual periods beginning on or after 1 January 2022. Earlier
application is permitted. The amendment is applied prospectively, i.e. for fair value
measurements on or after the date an entity initially applies the amendment.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
IFRS 3 - Reference to the Conceptual Framework
The amendments are effective for business combinations for which the date of acquisition is on
or after the beginning of the first annual period beginning on or after 1 January 2022. Early
application is permitted if an entity also applies all other updated references (published together
with the updated Conceptual Framework) at the same time or earlier.
The amendments update an outdated reference to the Conceptual Framework in IFRS 3 without
significantly changing the requirements in the standard.
The changes in Reference to the Conceptual Framework (Amendments to IFRS 3) are as
follows:
- update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework;
- add to IFRS 3 a requirement that, for transactions and other events within the scope of IAS 37 or IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to
identify the liabilities it has assumed in a business combination; and
- add to IFRS 3 an explicit statement that an acquirer does not recognise contingent assets acquired in a business combination.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
The amendments in IAS 16 are effective for annual periods beginning on or after 1 January
2022. Early application is permitted.
IAS 16 specifies that the cost of an asset includes any costs attributable to bringing the asset to
the location and condition necessary for it to be capable of operating in the manner intended by
management. One example of these directly attributed costs mentioned in IAS 16 is the cost of
testing whether the asset is functioning properly.
The amendments prohibit a company from deducting from the cost of property, plant and
equipment amounts received from selling items produced while the company is preparing the
asset for its intended use. Instead, a company will recognise such sales proceeds and related cost
in profit or loss.
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.
IAS 37 - Onerous contracts: Cost of fulfilling a contract
The amendments in IAS 37 are effective for annual periods beginning on or after 1 January
2022. Early application is permitted.
The amendment specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate
directly to the contract’. Costs that relate directly to a contract can either be incremental costs of
fulfilling that contract (examples would be direct labour, materials) or an allocation of other
costs that relate directly to fulfilling contracts (an example would be the allocation of the
depreciation charge for an item of property, plant and equipment used in fulfilling the contract).
The overview, available translations and latest news, as published by the IASB, regarding this
standard can be found here.