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    Please Find Attached Our Comments On The Proposed Amendments To lAS 37, lAS 19, lAS27, LFRS 3

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    Mohamed Zhran
    The document contains comments from the Zambia Institute of Chartered Accountants on proposed amendments to IAS 37, IAS 19, IAS 27, and IFRS 3. For IAS 37 on provisions, contingent liabilities, and contingent assets, there is disagreement with changing the terminology as the current terms are well understood. For IAS 19 on employee benefits, the proposed amendments on recognition of termination benefits are agreed with. For IAS 27 on consolidated and separate financial statements, the proposed amendments are agreed with. For IFRS 3 on business combinations, the questions on objectives, definitions, measurements, and additional guidance are agreed with, though there is doubt about justifying the significant

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    Please Find Attached Our Comments On The Proposed Amendments To lAS 37, lAS 19, lAS27, LFRS 3

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    Mohamed Zhran
    21 views5 pages
    The document contains comments from the Zambia Institute of Chartered Accountants on proposed amendments to IAS 37, IAS 19, IAS 27, and IFRS 3. For IAS 37 on provisions, contingent liabilities, and contingent assets, there is disagreement with changing the terminology as the current terms are well understood. For IAS 19 on employee benefits, the proposed amendments on recognition of termination benefits are agreed with. For IAS 27 on consolidated and separate financial statements, the proposed amendments are agreed with. For IFRS 3 on business combinations, the questions on objectives, definitions, measurements, and additional guidance are agreed with, though there is doubt about justifying the significant

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    The document contains comments from the Zambia Institute of Chartered Accountants on proposed amendments to IAS 37, IAS 19, IAS 27, and IFRS 3. For IAS 37 on provisions, contingent liabilities, and contingent assets, there is disagreement with changing the terminology as the current terms are well understood. For IAS 19 on employee benefits, the proposed amendments on recognition of termination benefits are agreed with. For IAS 27 on consolidated and separate financial statements, the proposed amendments are agreed with. For IFRS 3 on business combinations, the questions on objectives, definitions, measurements, and additional guidance are agreed with, though there is doubt about justifying the significant

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views5 pages

    Please Find Attached Our Comments On The Proposed Amendments To lAS 37, lAS 19, lAS27, LFRS 3

    Uploaded by

    Mohamed Zhran
    The document contains comments from the Zambia Institute of Chartered Accountants on proposed amendments to IAS 37, IAS 19, IAS 27, and IFRS 3. For IAS 37 on provisions, contingent liabilities, and contingent assets, there is disagreement with changing the terminology as the current terms are well understood. For IAS 19 on employee benefits, the proposed amendments on recognition of termination benefits are agreed with. For IAS 27 on consolidated and separate financial statements, the proposed amendments are agreed with. For IFRS 3 on business combinations, the questions on objectives, definitions, measurements, and additional guidance are agreed with, though there is doubt about justifying the significant

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    Letter of Comment No: 1%0

    File Reference: 1204-001


    ZICA

    ZAMBIA INSTITUTE OF CHARTERED ACCOUNTANTS

    24 Joseph Mwilwa Road


    Rhodes Park
    P.O. Box 32005
    Lusaka
    ZAMBIA

    Telephone 00 260 1 222773, Fax 00 260 1 236593


    E-Mail: techzica@coppernet.zm

    Please find attached our comments on the


    proposed amendments to lAS 37, lAS 19,
    lAS27, lFRS 3,

    1.0 Proposed Amendments to lAS 37 Provisions, Contingent


    Liabilities and Contingent Assets

    Question I-Scope ofIAS 37 and Terminology


    (a) Agreed

    (b) Disagreed. The tenn 'provision' is well understood to mean


    either an item;
    (J) Which is or will become a liability but the amount of
    that liability is uncertain, or
    (2) Which mayor may not be a liability

    and is recognized by the directors as a liability for the


    purposes of the current balance sheet and relates to the
    current or prior period.
    An example of (1) is a claim for damages which is accepted
    but not yet quantified.

    An example of (2) is a claim for damages which is


    disputed.

    Any alternative wording covering the uncertainty is


    unlikely to be as well understood.

    Question 2-Contingent Liabilities


    (a) Disagreed. The term 'contingent liability' is well understood
    to mean either an item;
    (I) Which is or will become a liability but the amount of
    that liability is uncertain, or

    (2) Which mayor may not be a liability

    but is not recogni zed by the directors as a li ability for the


    purposes of the current balance sheet and would relate to the
    current or prior period.

    Any alternative wording covering the uncertainty is unlikely


    to be well understood.

    (b) Agreed.

    Question 3-Contingent Asset


    (a) Agreed
    (b) Agreed.

    Question 4-Constructive Obligation


    (a) Agreed
    (b) Agreed

    Question 5-Probability Recognition Criterion


    (a) It appears to us that there are frequently situations where a
    conditional obligation may arise which is likely to crystallize
    into an actual li ability at some future date but which will at
    that future date relate to the period currently under
    consideration.
    The example which frequently arises relates to retirement
    benefits of employees. The Employment Act provides that an
    employee, not covered by a union agreement, who has
    worked for an employer for minimum often years and
    reaches the age of 55 is entitled to a retiremen t benefits of
    al sa la ry fo r ea ch co m pl et ed ye ar o f
    25 % o f hi s final annu ov is io ns.
    re em en ts co nt ai n si m il ar pr
    service. M os t un io n ag e in co me
    or e su bs ta nt ia l, re la te to th
    T he am ou nts are th er ef
    th e w ho le pe ri od o f em pl oy m en t and, in m y
    ge ne ra te d ov er
    re co gn iz ed as a "p ro vi si on " or no te d as a
    view, ne ed to be
    "c on ti ng en t liability". rd w ou ld
    e pr op os ed am en de d st an da
    W e are uncl ea r ho w th
    lo w su ch a co nd it io na l ob lig at io n to be
    require or al
    recognized.

    Question 6-Measurement
    (a) A greed.

    Question 7-Re-measurement
    (a ) Agreed

    Qnestion 8- 0n er ou s Contract
    (a) Agreed
    (b) Agreed
    (c) N /A

    st io n 9- R es tr uc tu ri ng P ro vi si on s
    Q ue
    (a) A greed.
    (b) Yes.

    en ts lA S 19 - E m p lo y ee B en ef it s
    2.0 Proposed Amendm
    in it io n of T er m in ation Benefit s
    Q ue st io n I- D ef
    Agreed

    io n 2- R ec og ni ti on of T er m in at ion Benefits
    Quest
    Agreed

    lu nt ar y T er m in at io n be ne fi ts that
    Question 3-Recognition of invo
    Relate to Future Service
    Agreed

    to lA S 27 C o n so li d a te d a n d S ep arate
    3.0 Proposed Amendments
    Financial
    Statements
    Question 1
    Agreed

    Question 2
    Agreed
    Question 3
    Agreed

    Question 4
    Agreed

    Question 5
    Agreed

    4.9 Proposed Amendments to IFRS 3 Business Combinations

    Question 1- Objective, Definition and Scope


    (a) Agreed

    Question 2-Defmition of a Business


    (a) Yes

    Question 3-7 -Measuring the Fair Values of The Acquiree

    Question 3-Yes

    Question 4-Yes

    Question 5- Yes

    Question 6-Yes

    Question 7-Agreed

    Question 8 & 9- Measuring and Recognizing the Assets acquired and


    Liabilities assumed
    Question 8- Yes

    Question 9- Yes

    Question 10-12-Additional Guidance for applying the Acquisition


    to Particular types of Business Combinations.

    Question 10- Yes

    Question ll-Yes

    Question 12- Agreed.

    Question 13- Measurement Period


    Agreed. We are, however, doubtful whether the significant
    additional work likely to be involved is warranted when
    compared with the likely benefits from additional work. There
    may be a case for requiring comparative figures to be adjusted in
    the case of entities whose shares are traded on a stock exchange
    but it seems most unlikely that the additional work would be
    justified in any other case.

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