IFRS 10 and IFRS 11 do not provide specific transition exemptions in respect of the application of IAS 21, IAS 23 or IAS 36. The submitter therefore thinks that in a situation where an entity should apply IFRS 10 and IFRS 11 retrospectively, the entity should also apply other Standards retrospectively in order to comply with the requirements of IFRS 10 and IFRS 11.
At its July 2013 meeting, the Interpretations Committee observed that IFRS 10 provides exemption from retrospective application when ‘impracticability’ criterion is met. The Interpretations Committee noted that if it is impracticable to make the measurements as required by IFRS 10 because the retrospective application of those other Standards is impracticable, then the transitional provisions of IFRS 10 provide exemption from retrospective application.
The Interpretations Committee also noted that the changes resulting from the initial application of IFRS 11 would typically be to change from proportional consolidation to equity accounting or from equity accounting to recognising a share of assets and a share of liabilities. The Interpretations Committee noted that IFRS 11 already provide exemption from retrospective application in those situations. Consequently, the Interpretations Committee concluded that the initial application of IFRS 11 should not raise issues in respect of the application of other Standards in most cases.
At its November 2013 meeting, the Interpretations Committee determined that, in the light of the existing transitional requirements of IFRS 10 and IFRS 11, sufficient guidance or exemptions from retrospective application already exists and consequently decided not to add this issue to its agenda.