In April 2012, the IFRS Interpretations Committee (Interpretations Committee) received a request for guidance on the circumstances in which the restructuring of Greek government bonds should result in derecognition of the whole asset, or only part of it, in accordance with IAS 39 Financial Instruments:Recognition and Measurement. In particular, the Interpretations Committee was requested to consider the following questions:
(a) Whether the portion of the old Greek government bonds that are exchanged for twenty new bonds with different maturities and interest rates should be derecognised, or conversely accounted for as a modification or transfer that would not require derecognition?
(b) Whether IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors would be applicable in analysing the submitted fact pattern?
(c) Whether either paragraphs AG8 or AG62 of IAS 39 would be applicable to the fact pattern submitted if the Greek government bonds were not derecognised?
(d) What is the appropriate accounting for the GDP-linked security that was offered as part of the restructuring of Greek government bonds?
The Interpretations Committee discussed these issues at its May 2012 meeting, and tentatively decided not to add them to its agenda. The Interpretations Committee also concluded that the old Greek government bonds should be derecognised and that partial derecognition did not apply to this specific fact pattern. The basis for rejection can be found in the IFRIC Update of May 2012.
EFRAG issued a draft comment letter on 11 June 2012 whereby it agreed with the Interpretations Committee’s conclusion and supported its tentative agenda decision not to add the issue to its agenda.
EFRAG finalised its comment letter on 26 July 2012
At its September 2012 meeting, the Interpretations Committee discussed a feedback summary on its rejection notice and decided not to add any of the issues discussed on its agenda. In addition, at its November 2012 meeting, the Interpretations Committee discussed the scope of paragraph 5 of the application guidance in IAS 39 and decided that an interpretation was not necessary.
to access the IFRIC Update of May 2012.