The UITF meet on 16 September 2009 and considered:
- The basis of preparation for cessation accounts of Building Societies concluding that the basis of preparation for cessation accounts of building societies did not raise any issues that the UITF should take on to its agenda;
- The IFRIC draft Interpretation D25 ‘Extinguishing Financial Liabilities with Equity Instruments’. The UITF considered the guidance provided in the draft Interpretation and supported the IFRIC in its decision to issue an Interpretation on this matter. The UITF agrees that there is diversity in practice and acknowledges that in the present economic climate such guidance will be useful.
The UITF responded to the IFRIC noting that it considers that the most significant issue addressed in D25 is measurement of the equity instrument issued in consideration for the extinguishment of debt. Following detailed review of the proposals in D25 the UITF, on a majority basis, decided the equity instruments issued should be measured at the fair value of the financial liability extinguished and in order to determine the value of the liability it may be necessary to make reference to the value of the equity issued. Consequently, the UITF does not support the proposal in paragraph 5 of D25. (The UITF response can be downloaded from Accounting Standards Board - Publications - ASB responses to external consultations).
There are no other matters that the UITF is considering at this time.
International Financial Reporting Interpretations Committee (IFRIC)
The IFRIC does not have any proposals out for comment at the moment.
Details of the IFRIC's current projects are available on the IASB website. Current projects include:
- Accounting Production Stripping Costs
The IFRIC are considering the accounting for the costs of removal of waste material in a surface mining activity during the production phase.
- IFRS 2 'Share-based Payment. Classification of Vesting Conditions'
The IFRIC aims to clarify the distinction between service conditions, performance conditions and non-vesting conditions.
The status of IFRIC projects is located on IFRIC Projects
