News

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ISSB Chair meets leaders in Africa

26 Mar 2024

The Chair of the International Sustainability Standards Board (ISSB), Emmanuel Faber, has met with the presidents of Kenya and Nigeria, as well as government ministers in South Africa. He was accompanied by ISSB member Ndidi Nnoli-Edozien.

In Kenya, the ISSB representatives met with President William Ruto. The discussion focused on the role of the African region in the development and implementation of the ISSB’s work. The Institute of Certified Public Accountants of Kenya (ICPAK) has stated its intention to adopt the ISSB standards.

In Nigeria, the ISSB representatives met with President Bola Ahmed Tinubu. President Tinubu reaffirmed Nigeria's previous commitment to implement the ISSB standards. 

In South Africa, the ISSB representatives were joined by IFRS Foundation Trustee Suresh Kana. They met with Deputy Finance Minister David Masondo, as well as representatives from the Johannesburg Stock Exchange, the Institute of Directors South Africa and the Integrated Reporting Committee of South Africa. Discussions focused on the value of the ISSB Standards for supporting resilient economies and as a tool for companies to communicate to investors how they are meeting South African decarbonisation and transition-related objectives.

For more information, please click to see the press release on the IFRS Foundation website.

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ISSB (International Sustainability Standards Board) (blue) Image

Updated IASB and ISSB work plan — Analysis (March 2024)

26 Mar 2024

Following the IASB and ISSB meetings this month, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meetings and other developments since the work plan was last revised in February 2024. Changes are few, but the work plan reveals that three IASB publications are to be expected later this week.

Below is an analysis of all changes made to the work plan since our last analysis on 29 February 2024.

Standard-setting projects

  • Business combinations — Disclosures, goodwill and impairment — Following the publication of the exposure draft on 14 March 2024, the next expected project step is now the discussion of the feedback received expected to begin in H2 2024
  • Financial instruments with characteristics of equity — Discussion of the feedback received on the exposure draft is now expected to begin in May 2024 (previously Q2 2024)

Maintenance projects

  • Addendum to the exposure draft 'Third edition of the IFRS for SMEs Accounting Standard' — The exposure draft is now expected in March 2024 (previously April 2024)
  • Amendments to the classification and measurement of financial instruments — Final amendments are now expected in May 2024 (previously Q2 2024)

    IASB publications expected in March (i.e. this week)

    • Addendum to the exposure draft 'Third edition of the IFRS for SMEs Accounting Standard' — see above
    • IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — as part of the IFRS Accounting Taxonomy 2024
    • IFRS Accounting Taxonomy Update — Common practice (Financial instruments) and general improvements — as part of the IFRS Accounting Taxonomy 2024

      The above is a faithful comparison of the IASB and ISSB work plan at 29 February 2024 and 26 March 2024. For access to the current work plan at any time, please click here.

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      Education workshop on IFRS 18

      25 Mar 2024

      The International Accounting Standards Board (IASB) in conjunction with the European Accounting Association (EAA) will hold a virtual education workshop on IFRS 18 'Presentation and Disclosure in Financial Statements' on 22 April 2024.

      The purpose of the session is to inform academics involved in teaching financial reporting modules on the new requirements in IFRS 18 coming into effect on 1 January 2027. The session also aims to stimulate academic discussion and research that will be useful for the post-implementation review of IFRS 18.

      The workshop will be structured in three sections: 1) New defined subtotals in the statement of profit or loss; 2) Requirements for aggregation and disaggregation, and 3) Management-defined performance measures.

      Please click for more information and registration on the EAA website.

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      DPOC approves shortened comment period for proposed amendments to IFRS 9 and IFRS 7 related to power purchase agreements

      21 Mar 2024

      In an additional meeting today, the Due Process Oversight Committee (DPOC) discussed a possible shortened comment period for the IASB exposure draft on power purchase agreements expected to be published in May 2024.

      During the meeting, the IASB explained its reasons for suggesting a shortened comment period:

      • IASB added the project on power purchase agreements as an urgent project in July 2023, following requests from stakeholders for a timely solution of the issue. Following the development of a possible solution by the staff, the IASB then discussed the issue at all meetings from December 2023 to March 2024.
      • To achieve its objective of providing a timely solution as asked for by stakeholders, the IASB expects to publish an exposure draft in May 2024 and is currently aiming to finalise the amendments in 2024.
      • Throughout the project, the IASB did extensive outreach with stakeholders - "shared the sandbox" with them - so stakeholders know what is coming and will only need to comment on technical details.
      • The IASB has clearly communicated on the status of the project and the progress made throughout the project.
      • The proposed changes are narrow-scope amendments affecting particular requirements in IFRS 9 only.
      • Implementing the proposed amendments would not be burdensome for preparers.

      The DPOC followed the reasoning of the IASB and only asked a few clarifying questions. It finally agreed to a shortened comment period of 90 days.

      Please click for the following additional information on the IFRS Foundation website:  

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      IFRS Foundation announces new ITCG members

      21 Mar 2024

      The IFRS Foundation has announced the appointments and reappointments of several members to the IFRS Taxonomy Consultative Group (ITCG). All appointments and reappointments take effect from 1 April 2024.

      Two new organisations will now participate as will one new representative of an organisation that has already been participating. Four members of participating organisations have been reappointed.

      For more information, please see the press release on the IFRS Foundation website.

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      March 2024 ISSB meeting notes posted

      21 Mar 2024

      The ISSB met in Frankfurt on 13 March 2024. We have posted our comprehensive Deloitte observer notes for the project discussed during the meeting.

      The following topic was discussed:

      ISSB consultation on agenda priorities: The ISSB discussed the strategic direction of its activities. The ISSB decided to begin new research and standard-setting projects; support the implementation of IFRS S1 and IFRS S2; enhance the SASB standards; pursue connectivity between the requirements in sustainability and financial reporting standards; seek to ensure that the ISSB standards are interoperable with other sustainability standards; and engage with stakeholders. The ISSB also decided to place a high level of focus on supporting the implementation of IFRS S1 and IFRS S2; to place a slightly lower level of focus on enhancing the SASB standards and on beginning new research and standard-setting projects and to give these activities equal attention; to reserve resources to give the ISSB flexibility; and not to specify a level of focus on connectivity, interoperability and engaging with stakeholders, acknowledging that these activities are integral to all of the ISSB’s work.

      Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

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      Agenda for the March 2024 DPOC meeting

      20 Mar 2024

      The Due Process Oversight Committee (DPOC) will meet on 21 March 2024 via video conference.

      The agenda for the DPOC meeting is sum­marised below.

      Thursday, 21 March 2024

      • In­tro­duc­tion
      • Power Purchase Agreements: Approval for a shortened comment period for proposed amendments to IFRS 9 and IFRS 7 related to power purchase agreements
      • Correspondence to the DPOC on submissions to the Interpretations Committee on climate-related commitments

      Agenda papers for the meeting are available on the IFRS Foun­da­tion's website.

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      Basel Committee urged to back ISSB standards

      19 Mar 2024

      UK Finance, representing over 300 firms from the banking and finance industry, has used its response to Basel Committee’s climate risk Pillar 3 proposals to urge the Committee to back the ISSB standards to drive global consistency and comparability across all sectors in all jurisdictions to support the transition to a decarbonised economy.

      While Pillar 3 disclosures are meant to provide information about banking institutions’ risk management practices and regulatory capital ratios, UK Finance believes that the the Basel Committee on Banking Supervision (BCBS) can use its weight to back the ISSB’s IFRS standards and promote their adoption globally. The comment letter notes:

      We recommend that BCBS encourage IFRS S2 adoption by banks in those regions that do not implement them. We recommend that the BCBS do all that is necessary to ensure that the global baseline framework of IFRS S2 requirements become and continue to inform jurisdictional climate risk disclosure requirements, driving consistency, comparability and thereby support broader sustainability disclosure objectives.

      Please click to access the full comment letter on the UK Finance website. The recommendations around IFRS S2 Climate-related Disclosures inform the five key recommendations in the cover note.

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      ISSB publishes March 2024 podcast

      19 Mar 2024

      The ISSB has released a podcast hosted by ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd discussing the latest developments from the ISSB.

      The podcast discusses the following:

      • the ISSB’s work with jurisdictions around the world;
      • the recent SEC ruling;
      • key takeaways from the SSAF meeting, the ISSB meeting and the TIG meeting;
      • the ISSB's strategic direction and balance of activities for the next two-year work plan;
      • the IFRS Sustainability Disclosure Taxonomy; and
      • further ISSB activities in March.

        For more information and access to the podcast, please see the press release on the IFRS Foundation website.

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        Pre-meeting summaries for the March 2024 IASB meeting

        15 Mar 2024

        The IASB will meet in London on 18-21 March 2024. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. We summarised the agenda papers made available by the IASB staff and point out the main issues to be discussed by the IASB and the staff recommendations.

        The following topics are on the agenda:

        Board work plan update: The staff will provide an overview of the work plan. In particular, the staff will present completed projects, new projects, expected consultation documents and expected project completions.

        Post-implementation review (PIR) of IFRS 9—Impairment: The IASB will deliberate the feedback received in response to its request for information Post-implementation Review—IFRS 9 Financial Instruments—Impairment. The staff recommends that the IASB does not take any further action on the matters raised by respondents regarding the use of forward-looking scenarios and post-model adjustments or management overlays in measuring expected credit losses.

        Power purchase agreements: The staff will provide recommendations for amendments to propose in an exposure draft and ask for permission to begin the balloting process. In particular, the staff recommends proposed amendments to the own-use requirements and to the hedge accounting requirements. The staff also recommends that the IASB propose a scope for the amendments, and disclosure and transition requirements.

        Second comprehensive review of the IFRS for SMEs Standard: The IASB will continue the redeliberations of its proposals in the exposure draft (ED) Third edition of the IFRS for SMEs Accounting Standard. In particular, the IASB will discuss the proposed revised Section 23 Revenue from Contracts with Customers, additional and alternative simplifications, other issues raised by respondents to the ED, proposed revised Section 2 Concepts and Pervasive Principles and updating the paragraph numbers of the IFRS for SMEs standard.

        Climate-related and other uncertainties in the financial statements: The staff will explain the approach it has taken to develop examples illustrating how to apply requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in financial statements.

        Maintenance and consistent application: The IASB will discuss whether and to what extent the proposed disclosures requirements in the forthcoming exposure draft (ED) Use of a Hyperinflationary Presentation Currency by a Non-hyperinflationary Entity should apply to subsidiaries without public accountability. The staff will also ask for permission to ballot the ED.

        PIR of IFRS 15 Revenue from Contracts with Customers: In this session, the IASB will further analyse the feedback specific to determining the transaction price, determining when to recognise revenue and disclosure requirements of IFRS 15. The staff recommends that the IASB take no further action on those items.

        Equity method: The staff will ask the IASB to clarify its tentative decision regarding transitional requirements for the proposed amendments to IAS 28 and to agree on the due process steps for the exposure draft.

        Management commentary: The IASB will be asked for comments and questions on the discussion about the direction of the management commentary project. The staff has identified the following four broad alternative directions that the IASB could take at a future meeting: finalise the project; retire the project; undertake a broader project; and keep the project on hold.

        Catch-up exposure draft of the forthcoming IFRS 19 Subsidiaries without Public Accountability: Disclosures: The staff will ask the IASB to agree on disclosure requirements to propose in the “catch-up exposure draft” following the publication of IFRS 19.

        Rate-regulated activities: The IASB will continue to redeliberate the proposals in the exposure draft Regulatory Assets and Regulatory Liabilities, in particular the discount rate and reduced disclosure requirements.

        Our pre-meet­ing summaries is available on our March meeting notes page and will be sup­ple­mented with our popular meeting notes after the meeting.

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