9-2-2009 | EFRAG's draft comment letter on the ED of proposed amendments to IFRIC 9 and IFRIC 16

EFRAG has issued its draft comment letter on the Exposure Draft of proposed amendments to IFRIC 9 and IFRIC 16. The letter can be downloaded here. Comments can be sent by e-mail or our website by 25 February 2009.
	Proposed amendments to IFRIC 9 Reassessment of embedded derivatives EFRAG agrees that a consequential amendment is required to ensure that the scope of IFRIC 9 remains the same as it was before the IASB changed the definition of a business combination in the revised IFRS 3 Business Combinations. We agree that the scope of IFRIC 9 is amended to make it clear that IFRIC 9 does not apply to embedded derivatives in contracts acquired in a business combination, a combination of entities under common control or the formation of joint ventures. However, we also believe that acquisitions of associates should be excluded from the scope of IFRIC 9. We agree that the amendment should be applied prospectively for annual periods beginning on or after 1 July 2009.   Proposed amendments to IFRIC 16 Hedges of a Net Investment in a Foreign Operation EFRAG agrees with the proposed amendment to IFRIC 16, which would remove the restriction that the hedging instrument cannot be held by the foreign operation whose net investment is being hedged.  However, we believe that effective date requirements for this amendment need further clarification.
Document : EFRAG DRAFT comment letter on ED of IFRIC 9 and IFRIC 16 amendment.pdf
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