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
shareholder.

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
legislation.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Deadline for comments on the levies and put
option proposals is 5 September and 1 October, respectively.