The International Accounting Standards Board (IASB) has issued an Exposure Draft to propose amendments to IFRS 10, Consolidated Financial Statements, IFRS 12, Disclosure of Interests in Other Entities, IAS 27, Separate Financial Statements, IAS 28, Investments in Associates and Joint Ventures and IAS 36, Impairment of Assets, in September 2014.

This Exposure Draft addresses questions received on the unit of account for investments in subsidiaries, joint ventures and associates and on their fair value measurement when those investments are quoted in an active market (quoted investments). Similarly, the IASB also received questions on the measurement of the recoverable amount of cash-generating units (CGUs) on the basis of fair value less costs of disposal when they correspond to entities that are quoted in an active market (quoted CGUs).

The proposed amendments clarify that an entity should measure the fair value of quoted investments and quoted CGUs as the product of the quoted price for the individual financial instruments that make up the investments held by the entity and the quantity of financial instruments.

This Exposure Draft also sets out proposed amendments to the Illustrative Examples for IFRS 13, Fair Value Measurement to illustrate the application of paragraph 48 of that Standard for a specific case. The example illustrates the fair value measurement of an entity’s net exposure to market risks arising from a group of financial assets and financial liabilities whose market risks are substantially the same and whose fair value measurement is categorised within Level 1 of the fair value hierarchy.

The Board invites comments on any specific aspect of the Exposure Draft. Comments are most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

How to comment

Comments can be submitted using one of the following methods:

1.       Electronically:                Click on http://www.icai.org/comments/asb/ to submit comment online                  

1.       Email:                            Comments can be sent to: commentsasb@icai.in

1.       Postal:                         Secretary, Accounting Standards Board,

                                                   The Institute of Chartered Accountants of India,

                                                   ICAI Bhawan, Post Box No. 7100,

                                                   Indraprastha Marg, New Delhi 110 002

You are requested to mention your contact number and Email address while submitting comments.