The 2016 amendment on transfers

Learning objectives

• Place the 2016 amendment on transfers and its effective date.L1, L2

Normative references

• IAS 40 §84CTransition for the 2016 amendment (paras. 57-58): applied to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments; at that date, the entity reassesses the classification of property held and reclassifies it, where applicable, under paras. 7-14. (The effective date, for annual periods beginning on or after 1 January 2018, is in para. 85G.)
• IAS 40 §84DAs an exception to para. 84C, retrospective application of the 2016 amendment in accordance with IAS 8 is permitted only if it is possible without the use of hindsight.
• IAS 40 §84EReclassification at the date of initial application (para. 84C): apply paras. 59-64, reading the date of change in use as the date of initial application, and recognise in opening retained earnings any amount that would have been recognised in profit or loss; disclose the amounts reclassified in the reconciliation required by paras. 76 and 79.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• From which periods does the 2016 amendment on transfers apply?L2