The IFRS Interpretations Committee has
proposed guidance on the accounting for levies charged by public
authorities on entities that operate in a specific market.
The committee has also proposed guidance on
the accounting for a put option written by a parent entity on the
shares of its subsidiary held by a non-controlling-interest
In the first proposal,
DI/2012/1 Levies Charged by Public Authorities on Entities
that Operate in a Specific Market, the committee said it
considered how an entity would account for the payment of levies,
other than income taxes, in its financial statements and when the
liability to pay a levy should be recognised.
The proposal states that an obligating event
that gives rise to a liability to pay a levy is the activity that
triggers the payment of the levy as identified by the
In the second proposal, DI/2012/2 Put
Options Written on Non-controlling Interests, the committee
considered how to measure the financial liability created when a
parent entity is obliged to purchase the shares of its subsidiary
for cash or for another financial asset and the parent must
recognise a financial liability in its consolidated financial
statements for the present value of the option exercise price.
The proposed guidance also specifies that all
changes in the measurement of that financial liability should be
recognised in profit or loss in accordance with IAS
39 Financial Instruments: Recognition and
Measurement and IFRS 9 Financial Instruments.
Deadline for comments on the levies and put
option proposals is 5 September and 1 October, respectively.