Beyond the GAAP - January 2013 issue

As we move into the new year, many of us are wondering what will be the outcome of the debate over the correct accounting treatment of puts on non-controlling interests.

The IFRS Interpretations Committee itself seems to have doubts as to whether changes in the value of the liability should really be recognised in profit or loss. Once again, it has asked the IASB to reconsider the issue. This seems to be the equivalent of launching a message in a bottle into the waves. Will it find a more welcoming shore than it has done previously? Only time will tell!

In Europe, ESMA has published a study on impairment testing of goodwill in 2011 IFRS financial statement. It makes several recommendations that it would like to see implemented by issuers in the 2012 financial statements (although the timing of the publication makes it short notice for issuers).

Highlights

IFRS Standards

Puts on non-controlling interests: confirmation that changes in the value of the liability shall be recognised in profit or loss
Levies charges on entities that participate in a specific market - discussions continue
Discount rate for post-employment benefits
IASB proposes amendments to IAS 36 disclosures on recoverable amount of impaired assets
IASB puts Philippe Danjou article online