Link to Adoption Statements and text of Amendments here.
The list of annual improvements and narrow-scope amendments projects below were issued by the IASB in May 2020. The EU did not adopt these amendments before the UK left the EU at the end of the Transition Period on 31 December 2020.
Consequently, these amendments have been assessed and adopted by the UKEB.
The UKEB secretariat has published a [draft] UK Endorsement Criteria Assessment below on a set of six Amendments to international accounting standards published by the International Accounting Standards Board (IASB) in May 2020, with an effective date of 1 January 2022 with earlier application permitted, (the ‘May 2020 Amendments’).
The May 2020 Amendments are comprised of three Annual Improvements amendments (from the IASB’s Annual Improvements to IFRS® Standards 2018–2020) and three Narrow-Scope amendments.
The UKEB secretariat welcomes stakeholders’ views on the potential UK adoption of the set of amendments covered in this assessment. These amendments are minor and/or narrow in scope.
The UKEB was not able to directly influence the development of the IASB’s proposals for these amendments as they were finalised and published before the creation of the UKEB. However, these amendments have been subject to public consultation and comments from UK stakeholders were fully considered by the IASB when finalising those amendments.
The IASB published Annual Improvements to IFRS® Standards 2018–2020 in May 2020, a collection of four different amendments to IFRS Standards. These amendments are effective for annual periods beginning on or after 1 January 2022, with early application permitted.
The amendments included in this publication are as follows:
The amendments related to this project, Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) were published by the IASB in May 2020. These amendments are effective for annual reporting periods beginning on or after 1 January 2022, with early application permitted.
The amendments prohibit an entity from deducting from the cost of property, plant and equipment, any proceeds received from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items and related cost, in profit or loss.
The amendments related to this project Onerous Contracts—Cost of Fulfilling a Contract (Amendments to IAS 37) were published by the IASB in May 2020. These amendments are effective for annual periods beginning on or after 1 January 2022, with early application permitted.
Prior to these amendments, IAS 37 Provisions, Contingent Liabilities and Contingent Assets, did not specify which costs to include in estimating the ‘cost of fulfilling’ a contract for the purpose of assessing whether that contract is onerous.
The amendments to IAS 37 specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. These costs can either be:
The amendments related to this project, Reference to the Conceptual Framework (Amendments to IFRS 3) were published by the IASB in May 2020. These amendments are effective for annual periods beginning on or after 1 January 2022, with early application permitted.
Originally, IFRS 3 Business Combinations required an entity to refer to an older version of the Conceptual Framework (that existed when IFRS 3 was developed) to determine what constitutes an asset or a liability. The purpose of this project was to update IFRS 3 to require an entity to refer instead to the Conceptual Framework issued in March 2018.
The amendments to IFRS 3 also added to IFRS 3 an exception to its requirement for an entity to refer to the Conceptual Framework. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 should instead refer to IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies. This exception was added to avoid an unintended consequence of updating the reference to the latest Conceptual Framework.