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The Interpretations Committee will consider the issues together with other IFRS 5 issues

 11 November 2014


At its September 2014 meeting, the Interpretations Committee had considered the next steps in addressing several issues relating to IFRS 5 and had decided to discuss new issues that it had recently received before deciding how to proceed.

At this meeting, the Interpretations Committee discussed the following new issues:

  1. Issue 1A: do certain cases of ‘loss of control of a subsidiary’ meet the criteria for classifying the subsidiary as held for sale in accordance with IFRS 5?
  2. Issue 1B: is IFRS 5 applicable to a disposal group consisting mainly or entirely of financial instruments?
  3. Issue 2: how to apply the notion of a ‘major line of business’ in presenting discontinued operations.

With regard to Issue 1A, the Interpretations Committee noted that it would not be appropriate to consider individual cases separately. It therefore asked the staff to consider the broader question of whether the ‘loss of control’ is key to the inclusion of an event within the scope of IFRS 5 or whether there also needs to be a disposal in order for the event to be classified as held for sale.

The Interpretations Committee did not discuss Issues 1B and 2.

The Interpretations Committee will consider Issues 1A, 1B and 2 at a future meeting together with the issues that it had considered in the September 2014 meeting and will decide how proceed.

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