International Accounting Standards Board
30 Cannon Street
London. EC4M 6XH
13 March 2009
Dear Sirs
Subject: Exposure Draft of Proposed amendments to IAS 24: “Relationships
with the State”
Consejo Mexicano para la Investigación y Desarrollo de Normas de Información
Financiera (CINIF), the accounting standards setter body in Mexico welcomes the
opportunity to submit our comments on the Exposure Draft (ED) of Proposed
amendments to IAS 24 Relationships with the State.
GENERAL
Basically, CINIF supports the proposed amendments, intended to clarify and
strengthen the rules regarding the application of the proposed exemption.
CINIF believes that it is necessary to expand in IAS 24 the definition of state to
include in it multi-national governmental organisations. We understand that IASB is
not requiring comments on the definition of ‘State’, but we consider that such
amendment to the definition of state is essential to attain a clear IAS 24 and to
promote its consistent application.
O ur responses to your questions are as follows:
Q1. This exposure draft proposes an exemption from disclosures in IAS 24
forentities controlled, jointly controlled or significantly influenced by the
state in specified circumstances.
Do you agree with the proposed exemption, and with the disclosures
that entities must provide when the exemption applies?
not? If not, what would you propose instead and why?
Why or why
We agree with the proposed exemption and with the disclosures that entities
must provide when the exemption applies. However, we believe that the
exception should be restricted to entities that are controlled, jointly controlled or
significantly influenced by the same state.
Q2. The exposure draft published in 2007 proposed a revised definition
of a related party. The Board proposes to amend the definition further to
ensure that two entities are treated as related to each other whenever a
person or a third entity has joint control over one entity and that
person (or a close member of that person’s family) or the third
entity has joint control or significant influence over the other entity or
has significant voting power in it.
Do you agree with this proposal? Why or why not? If not, what would
you propose instead and why?
We agree with this proposal to amend the definition of related party. However, we
believe that a definition of significant voting power should be included in IAS 24
or if a definition is not included significant voting power should be removed
Q3. Do you have any other comments on the proposals?
We do not have other comments on the proposals.
If additional information is required on our comments above, please contact me at
00-52-55-55965633 or 00-52-55-55965634 or by e-mail at:
fperezcervantes@cinif.org.mx with copy to acampana@cinif.org.mx
Sincerely,
C.P.C. Felipe Perez Cervantes
President of the Mexican Accounting Standards Board
Consejo Mexicano para la Investigación y Desarrollo
de Normas de Información Financiera (CINIF)