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Agenda for March 2024 CMAC meeting

29 Feb 2024

Representatives from the International Accounting Standards Board (IASB) will meet with both the Capital Markets Advisory Council (CMAC) in a hybrid conference on 8 March 2024. The agenda for the meeting has been released.

The full agenda for the meeting is sum­marised below:

Friday, 8 March 2024 (08:55-12:15)

  • Welcome
  • IASB update
  • ISSB update
  • Financial Instruments with Characteristics of Equity
  • Post-Implementation Review of IFRS 9 — Impairment

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

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IASB announces webcast series on forthcoming IFRS Accounting Standard for Subsidiaries without Public Accountability

29 Feb 2024

In anticipation of the forthcoming IFRS Accounting Standard for Subsidiaries Without Public Accountability, a series of informative webcasts have been made available. These webcasts offer key insights into the upcoming standard and aim to provide a comprehensive understanding of the standard from various perspectives and shed light on its implications for eligible companies.

The webcast series comprises of three sessions: (1) preparer's perspective, (2) regulator's perspective, and (3) overview of the forthcoming IFRS Accounting Standard.

The webcasts are available on the IFRS Foundation's website.

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IFRS Foundation Chair delivers keynote on global financial standards and sustainability reporting

29 Feb 2024

Erkki Liikanen, Chair of the IFRS Foundation Trustees, addressed attendees at the IFRS Foundation Trustees’ stakeholder dinner in Madrid, Spain, on 28 February 2024. Chair Liikanen highlighted the Foundation’s role in global governance, strategy, and oversight of standard-setting boards. He emphasised the significance of the IFRS Foundation’s collaboration, with trustees representing diverse expertise from around the world and underscored the Foundation’s commitment to transparency, with all meetings held publicly and documents accessible online.

Reflecting on the Foundation’s journey, Chair Liikanen outlined its inception in response to the challenges of fragmented accounting standards in the late 20th century. With the endorsement of international accounting standards by market regulators in 2000, the IFRS Foundation emerged under the leadership of Paul Volcker. Today, over 140 countries adhere to IFRS Standards, fostering global financial language and facilitating cross-border investment. Further, Chair Liikanen addressed the Foundation’s recent strides in sustainability reporting, including the establishment of the International Sustainability Standards Board (ISSB) and the publication of inaugural Sustainability Disclosure Standards. He noted ongoing efforts to align with existing standards and engage stakeholders globally in advancing sustainability disclosure. Additionally, he highlighted the forthcoming overhaul of Primary Financial Statements by the IASB in 2024, signaling continued evolution in corporate reporting under the Foundation’s purview.

The full transcript of the speech is available on the IFRS Foundation’s website.

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Agenda for the March 2024 SSAF meeting

29 Feb 2024

The IFRS Foundation has released an agenda and meeting papers for the meeting of the Sustainability Standards Advisory Forum (SSAF), which is to be held in Frankfurt on 11 March 2024.

A summary of the agenda is set out below:

Monday 11 March 2024 (10:30-17:00)

  • Connectivity
  • ISSB consultation on agenda priorities
  • IFRS sustainability disclosure taxonomy
  • Update on education material on IFRS S1 and IFRS S2
  • Enhancing the SASB standards
  • Agenda planning

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

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

29 Feb 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 January 2024.

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

Stan­dard-set­ting projects

  • Dis­clo­sure ini­tia­tive — Sub­sidiaries without public ac­count­abil­ity: Dis­clo­sures— A final standard is now expected in May 2024 (pre­vi­ously April 2024)

Main­te­nance projects

  • Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard — The exposure draft is now expected in April 2024 (previously Q2 2024)
  • Annual Im­prove­ments to IFRS Accounting Standards— Final amendments of the following projects are expected in Q3 2024:
    • Cost Method (Amend­ments to IAS 7)
    • Dere­cog­ni­tion of Lease Li­a­bil­i­ties (Amend­ments to IFRS 9)
    • De­ter­mi­na­tion of a ‘De Facto Agent’ (Amend­ments to IFRS 10)
    • Dis­clo­sure of Deferred Dif­fer­ence between Fair Value and Trans­ac­tion Price (Amend­ments to Guidance on im­ple­ment­ing IFRS 7)
    • Gain or Loss on Dere­cog­ni­tion (Amend­ments to IFRS 7)
    • Hedge Accounting by a First-time Adopter (Amend­ments to IFRS 1)
    • In­tro­duc­tion and Credit Risk Dis­clo­sures (Amend­ments to Guidance on im­ple­ment­ing IFRS 7)
    • Trans­ac­tion Price (Amend­ments to IFRS 9)
  • Climate-related and Other Uncertainties in the Financial Statements — A decision on the project direction is now expected in April 2024 (previously Q2 2024)
  • Power purchase agreements — The exposure draft is now expected in May 2024 (previously Q2 2024)
  • Updating the Subsidiaries without Public Accountability: Disclosures Standard The exposure draft is now expected in Q3 2024 (previously Q2 2024)
  • Use of a Hyperinflationary Presentation Currency by a Non-hyperinflationary Entity (IAS 21) — The exposure draft is now expected in Q3 2024 (previously H2 2024)

Research projects

  • Business Combinations under Common Control — A project summary is now expected in April 2024 (previously Q2 2024)
  • Post-implementation Review of IFRS 9 — Impairment — A feedback statement (previously a project summary) is now expected in Q3 2024 (previously H2 2024).

Governance

  • ISSB Consultation on Agenda Priorities The next project step will now be a feedback statement to be published in Q2 2024.

Other projects

  • IFRS Sustainability Disclosure Taxonomy— The taxonomy is now expected in April 2024 (previously Q2 2024).

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

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IASB issues podcast on latest Board developments (February 2024)

29 Feb 2024

The IASB has released a podcast hosted by Executive Technical Director Nili Shah featuring IASB Chair Andreas Barckow and IASB Vice-Chair Linda Mezon-Hutter discussing the deliberations at the February 2024 IASB meeting.

The podcast high­lights some of the projects that were discussed during the meeting, including:

  • updates to the work plan;
  • post-im­ple­men­ta­tion review of IFRS 15; 
  • rate-regulated activities;
  • second comprehensive review of the IFRS for SMEs Accounting Standard.

The podcast can be accessed here on the IFRS Foun­da­tion website.

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February 2024 ISSB meeting notes posted

29 Feb 2024

The ISSB met in New York on 21 February 2024. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed:

Supporting implementation of IFRS S1 and IFRS S2: The ISSB discussed focus areas for educational material that the staff is currently developing to support the implementation of IFRS S1 and IFRS S2. The focus areas for the discussion were: using ISSB standards to prepare sustainability-related financial disclosures; definition of material information; sustainability-related risks and opportunities; and information that is material might change over time. No decisions were made.

ISSB consultation on agenda priorities: The ISSB decided to proceed with the criteria for assessing the priority of new research and standard-setting projects that could be added to the ISSB’s work plan. The ISSB voted to modify the criterion on how a potential project would relate to other projects in the work plan to incorporate the concept of interoperability (i.e. consider the work of other standard-setters).

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

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February 2024 IASB meeting notes posted

27 Feb 2024

The IASB met in London on 19-22 February 2024. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed:

Work plan: The staff gave an oral update on the forthcoming IFRS 19 Subsidiaries without Public Accountability: Disclosures.

Equity method: The IASB decided to clarify several matters arising from its tentative decisions and to propose amendments to IFRS Accounting Standards. The IASB also decided which of the disclosure requirements to be proposed in the future exposure draft will also be proposed as amendments to the forthcoming IFRS 19.

Second comprehensive review of the IFRS for SMEs standard: The IASB made decisions on the proposals in the ED Third edition of the IFRS for SMEs Accounting Standard on Section 9 Consolidated and Separate Financial Statements, Section 19 Business Combinations and Goodwill and Section 23 Revenue from Contracts with Customers.

Maintenance and consistent application: The IASB confirmed the proposed amendments in exposure draft Annual Improvements to IFRS Accounting Standards—Volume 11. The IASB also discussed its project on use of a hyperinflationary presentation currency by a non-hyperinflationary entity (IAS 21), and made decisions on the disclosure and transition requirements.

Post-implementation review (PIR) of IFRS 9—impairment: The IASB considered the feedback received in response to its request for information Post-implementation Review—IFRS 9 Financial Instruments—Impairment. The IASB made decisions on the two overarching areas of the impairment requirements—the general approach to recognition of the expected credit loss (ECL) and determining significant increases in credit risk (SICR).

PIR of IFRS 15 Revenue from Contracts with Customers: The IASB considered the feedback received in response to its request for information Post-implementation Review—IFRS 15 Revenue from Contracts with Customers. The IASB made decisions with regard to identifying performance obligations in a contract, principal versus agent considerations and licensing.

Power purchase agreements: The staff provided an update on the project and outlined the next steps for the project.

IFRS 9 amendments to classification and measurement: The IASB made decisions on the disclosure requirements relating to contractual terms that could change the contractual cash flows of financial assets and financial liabilities not measured at fair value through profit or loss; and the effective date and transition requirements for the final amendments. The IASB also gave permission to begin the balloting process for the final amendments and decided which of the new or amended disclosure requirements should apply to subsidiaries without public accountability.

Rate-regulated activities: The IASB made decisions on the proposals in the exposure draft Regulatory Assets and Regulatory Liabilities, in particular on the boundary of a regulatory agreement, amendments to IAS 36 and disclosure.

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

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IFRS Foundation releases summary of national standard-setters' research on materiality judgement guidance

27 Feb 2024

The IFRS Foundation has issued a comprehensive summary that compiled evidence from national accounting standard-setters concerning the impact of guidance on materiality judgements within IFRS Accounting Standards and related materials.

Materiality judgement demands that companies assess whether information could reasonably influence investor decisions.

In 2017 and 2018, the IASB's refined the definition of materiality and furnish guidance along with case studies to facilitate informed judgements. In 2022, the IFRS Foundation issued a call for research as it was seeking to partner with national standard-setters to gather research and information related to the changes and additions to the IASB’s literature on making materiality judgements. 

The findings of the research underscored a robust understanding of materiality's concept. While utilisation of the 2017 and 2018 guidance exhibited disparities across regions, where implemented, it proved beneficial. Moreover, the research advocates for sustained efforts to raise awareness among stakeholders regarding the available guidance. Looking ahead, the IASB remains committed to providing further assistance to companies navigating materiality judgements, with insights from its research poised to influence ongoing discussions, including those within projects such as the initiative regarding climate-related and other uncertainties in the financial statements.

The national standard-setters taking part in the research initiative, working in partnership with academics from their jurisdictions, are from Australia, Botswana, China, Malaysia, Mexico and New Zealand.

Please click to access the research summary on the IFRS Foundation website.

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ISSB publishes February 2024 podcast

27 Feb 2024

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

The podcast discusses the following:

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

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