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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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GHG Protocol releases draft summaries of Scope 3 Standard feedback

15 Mar 2024

The Greenhouse Gas (GHG) Protocol secretariat has released a draft summary report providing a detailed overview of stakeholder feedback from a survey it conducted on its Scope 3 Standard. In addition, the secretariat has released a proposal summary giving an overview of proposal submissions related to the Scope 3 Standard.

The inclusion of feedback in the summaries does not indicate that a recommendation will be implemented or reflected in updates to either the Scope 3 Standard or Scope 3 Technical Guidance. Instead, the GHG Protocol secretariat and governance bodies are prioritising which topics to address in the update process, including the scope of work for updates and additional guidance and resources.

According to the draft summary report, the aim of any updates will be to align with best practice approaches to ensure that the GHG Protocol standards for corporate accounting and reporting are effective in providing a rigorous and credible accounting foundation for businesses to measure, plan, and track progress toward science-based and net-zero targets in line with the global 1.5°C goal. Any future updates will seek harmonisation and interoperability with accounting rules under development through major disclosure initiatives.

The review period for the summaries is open until 15 April 2024.  

Please click to access the following on the GHG Protocol website:

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CSSB publishes exposure drafts for first Canadian Sustainability Disclosure Standards

14 Mar 2024

The Canadian Sustainability Standards Board (CSSB) has published its proposals for the first Canadian Sustainability Disclosure Standards (CSDSs) based on IFRS S1 and IFRS S2. The consultation period is open until 10 June 2024.

The package comprises three consultation papers:

  • Proposed Criteria for Modification Framework
  • Proposed CSDS 1 General Requirements for Disclosure of Sustainability-related Financial Information
  • Proposed CSDS 2 Climate-related Disclosures

The proposed Criteria for Modification Framework presents the basis on which the CSSB could introduce changes to the ISSB standards. These criteria ensure that Canadian standards align with international standards while addressing Canadian public interest.

The proposed CSDS 1 and CSDS 2 are based on IFRS S1 and IFRS S2 with the following modifications: 

  • The proposed effective dates for CSDS 1 and CSDS 2 have been extended by one year compared to that of IFRS S1 and IFRS S2 (i.e. the proposed standards would become voluntarily effective for annual reporting periods beginning on or after 1 January 2025);
  • The proposed transition relief for disclosures beyond climate-related risks and opportunities has been extended from one year to two years;
  • The proposed requirements to disclose comparative information have been changed to align with the proposed modification for the transition relief; and
  • The proposed transition relief for disclosure of Scope 3 GHG emissions has been extended from one year to two years.

Please click to access the following on the Financial Reporting and Assurance Standards (FRAS) Canada website:

Note: On 10 April 2024, the CSSB offers a webinar on the proposed new standards. Please click for more information here.

 

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IASB proposes enhanced information on acquisitions

14 Mar 2024

The International Accounting Standards Board (IASB) has published an exposure draft IASB/ED/2024/1 'Business Combinations — Disclosures, Goodwill and Impairment (Proposed amendments to IFRS 3 and IAS 36)'. Comments are requested by 15 July 2024.

 

Background

This project results from the post-implementation review of IFRS 3 Business Combinations.

The feedback on the post-implementation review had revealed that impairment of goodwill is not always recognised in a timely fashion and that disclosures required by IFRSs do not provide enough information to understand whether the acquired business is performing as was expected at the time of the acquisition. There were also comments that the impairment test required for goodwill under IAS 36 Impairment of Assets is costly and complex.

The IASB therefore decided to investigate possible improvements to IFRS 3 Business Combinations and IAS 36 and a discussion paper was published on 19 March 2020.

The exposure draft published today considers feedback received on the discussion paper and proposes amendments to IFRS 3 and IAS 36 that aim at providing users with information that would allow them to better assess the performance of an entity’s business combinations and how efficiently and effectively management has used the entity’s economic resources to acquire these businesses.

 

Suggested changes

The proposed amendments in exposure draft IASB/ED/2024/1 Business Combinations — Disclosures, Goodwill and Impairment (Proposed amendments to IFRS 3 and IAS 36) are:

Proposed amendments to IFRS 3

  • For strategic business combinations, which are a subset of material business combinations and are identified using a set of thresholds in IFRS 3, an entity would be required to provide information about its acquisition-date key objectives and related targets for the business combination and whether these key objectives and related targets are being met. An entity would only have to disclose information that is reviewed by its key management personnel.
  • Entities would be exempted from disclosing some of the information if that information is commercially sensitive or would expose the entity to litigation risk.
  • The exposure draft includes several other proposed amendments to the disclosure requirements in IFRS 3, including new disclosure objectives and disclosure requirements around expected synergies the strategic rationale for the business combination.

Proposed amendments to IAS 36

  • The IASB proposes amendments to the impairment test in IAS 36 to reduce shielding by clarifying how to allocate goodwill to cash-generating units.
  • Other proposed amendments regard the disclosure in which reportable segment a (group of) cash-generating unit is included and how an entity calculates an asset’s value in use. 

Other proposed amendments

  • The exposure draft also proposes to amend the forthcoming IFRS 19 Subsidiaries without Public Accountability: Disclosures regarding disclosures about the strategic rationale for a business combination, the expected synergies, the contribution of the acquired business and the discount rate used in calculating the value in use.

    Comments on the proposed changes are requested by 15 July 2024.

     

    Effective date

    The IASB will decide on the effective date for the proposed amendments after exposure. The IASB proposes to require an entity to apply the amendments retrospectively. Earlier application would be permitted.

     

    Additional information

    Please click for:

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      Agenda for the March 2024 ASAF meeting

      12 Mar 2024

      The IFRS Foundation has released an agenda and meeting papers for the meeting of the Accounting Standards Advisory Forum (ASAF), which will be held in London on 25-26 March 2024.

      A summary of the agenda is set out below:

      Monday 25 March 2024 (10:15-17:30)

      • Agenda planning and feedback from previous ASAF meetings
      • Subsidiaries without public accountability: disclosures
      • Rate-regulated activities
      • Post-implementation review of IFRS 9 — impairment
      • Amendments to the classification and measurement of financial instruments

      Tuesday 26 March 2024 (9:00-13:15)

      • Post-implementation review of IFRS 15 Revenue from Contract with Customers
      • Climate-related and other uncertainties in the financial statements
      • EFRAG project on variable consideration
      • Financial instruments with characteristics of equity

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

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      C&S annual report reveals increase in sustainability policies

      12 Mar 2024

      Carrots & Sticks (C&S) has published the 2023 edition of its annual report, which presents a comprehensive assessment of environmental, social and governance (ESG) and sustainability policy worldwide. The report highlights the expanding nature of ESG and sustainability policies since 2020.

      The report provides analyses over 2,463 policies from 132 countries, 76 international and regional organisations from 1897 to the present day. The report notes a steep rise in voluntary policies since the UN Sustainable Decelopment Goals (SDGs) were launched in 2015.

      According to the report, there is a dominance of government entities as policy issuers and a prevalence of voluntary (over mandatory) policies. Most policies fall into the "low restrictiveness" category, which suggests limited power of enforcement.

      The full report is available on the C&S website.

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      Pre-meeting summaries for the March 2024 ISSB meeting

      11 Mar 2024

      The ISSB will meet in Frankfurt on 13 March 2024. We have posted our pre-meeting summaries for the meeting that allow you to follow the ISSB’s decision making more closely. We summarised the agenda papers made available by the ISSB staff and point out the main issues to be discussed by the ISSB and the staff recommendations.

      The following topic is on the agenda:

      ISSB consultation on agenda priorities: The ISSB will discuss the strategic direction of its activities. The staff recommends the following level of focus placed on each activity: a high level of focus on ‘supporting the implementation of IFRS S1 and IFRS S2’; a slightly lower, but equal level of focus on each ‘enhancing the SASB standards’ and ‘beginning new research and standard-setting projects’ when compared to ‘supporting the implementation of IFRS S1 and IFRS S2’; no specific level of focus on activities related to connectivity, interoperability and stakeholder engagement as these are all fundamental to the work the ISSB will perform in other activities; and reserved capacity for flexibility in the ISSB’s work to allow for the consideration of emerging issues and to support the IASB on projects/activities, as necessary.

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

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      IFRS Interpretations Committee holds March 2024 meeting

      11 Mar 2024

      The IFRS Interpretations Committee (IFRS IC) met in London on 5 March 2024. The IFRS IC discussed the finalisation of two agenda decisions and gave input into one IASB project.

      Finalisation of agenda decision—IAS 37 Provisions, Contingent Liabilities and Contingent Assets—Climate-related Commitment: In its November 2023 meeting, the IFRS IC discussed a submission asking its views on how IAS 37 applies to climate-related commitments to a fact pattern where an entity, which is a manufacturer of household products, publicly states a net-zero transition commitment. The manufacturer published a detailed plan for the modification of the manufacturing method to achieve 60% reduction in emissions in nine years and to buy carbon credits to offset its remaining emissions after those nine years. The IFRS IC concluded that whether there is a constructive obligation depends on different facts and circumstances. The present obligation and probable outflow criteria are satisfied only after nine years and thereafter as the entity emits greenhouse gases. 43 comment letters were received and most of the respondents agreed with the technical analysis in the tentative agenda decision and agreed not to recommend that the IASB consider adding a standard-setting project to the work plan. The IFRS IC decided to finalise the agenda decision and suggested changes to the drafting of the agenda decision. 

      Finalisation of agenda decision—IFRS 3 Business Combinations—Payments Contingent on Continued Employment during Handover Periods: In its September 2023 meeting, the IFRS IC received a submission about how an entity accounts for payments (as part of the acquisition agreement) to the sellers of an acquired business. The payments and continued employment aim to ensure the appropriate transfer of knowledge from the sellers to the new management team. The sellers are remunerated for their services at a level comparable to other management executives, but some of the consideration for the shares is withheld until the handover is complete and is forfeited if the individual leaves employment before completion of the handover. The sellers are also entitled to additional payments that are contingent upon meeting a specified level of financial performance and the continued employment during a limited period. The IFRS IC concluded that the evidence it gathered did not indicate that there is significant diversity in the accounting treatment and entities apply the accounting described in the agenda decision published in January 2013. 11 comment letters were received and most of the respondents agreed with the technical analysis in the tentative agenda decision. The IFRS IC decided to finalise the agenda decision.

      IFRS IC input to IASB projects—Post-implementation Review of IFRS 9 Financial Instruments—Impairment: IFRS IC members provided their input to the IASB’s post-implementation review (PIR) of the impairment requirements in IFRS 9—specifically, on application matters related to determining expected credit losses (ECL) for intragroup financial instruments, loan commitments, financial guarantee contracts and purchased or originated credit-impaired (POCI) financial assets.

      More In­for­ma­tion

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

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      March 2024 IASB meeting agenda posted

      08 Mar 2024

      The IASB has posted the agenda for its next meeting, which will be held in its offices in London on 18–21 March 2024. There are 11 topics on the agenda.

      The Board will discuss the following:

      • Work plan update
      • Post-implementation review of IFRS 9 — Impairment
      • Power purchase agreements
      • Second comprehensive review of the IFRS for SMEs Standard
      • Climate-related and other uncertainties in the financial statements
      • Maintenance and Consistent Application
      • Post-implementation review of IFRS 15 — Revenue from contracts with customers
      • Equity method
      • Management commentary — Project direction
      • Catch-up exposure draft of the 'Subsidiaries without Public Accountability Standard'
      • Rate-reg­u­lated ac­tiv­i­ties

      The full agenda for the meeting can be found here. We will post any updates to the agenda, our com­pre­hen­sive pre-meet­ing summaries, as well as observer notes from the meeting on this page as they become available.

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      New and revised pronouncements as at 31 March 2024

      08 Mar 2024

      Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 31 March 2024. This listing can be used to perform a quick check that new financial reporting requirements such as new and revised accounting standards and interpretations, and amendments to standards and interpretations, have been fully considered in the reporting close process. The information below can also be used to assist with the disclosure requirements under paragraph 30 of IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors', which requires entities to disclose any new IFRSs that are in issue but not yet effective and which are likely to impact the entity.

      Financial reporting considerations related to the Russia-Ukraine War
      Below is our usual analysis of new and amended standards, however, we are also aware that many entities will have been impacted by Russia's invasion into Ukraine. Please see our IFRS in Focus — Financial reporting considerations related to the Russia-Ukraine War highlighting some of the key issues to be considered by the entities in preparing their financial statements.

      This table can be used for all annual accounting periods. A 1st quarter ending on 31 March 2024 would mean that the annual reporting period began on 1 January 2024. Similarly, 2nd quarters ending on 31 March 2024 refer to annual periods that began on 1 October 2023, 3rd quarters ending on 31 March 2024 refer to annual periods that began on 1 July 2023, and 4th quarters ending on 31 March 2024 refer to annual periods that began on 1 April 2023.

      The information below reflects developments to 8 March 2024 and will be updated through to June 2024 to reflect new and revised financial and sustainability reporting requirements that need to be considered for reporting periods ending on 31 March 2024. For accounts approved after March 2024, please also refer to subsequent versions of this document for any new and revised IFRSs that have additionally been issued that might require disclosure in the accounts under IAS 8:30.

      The information below is organised as follows:

       

      Summary

      Pronouncements applicable to entities applying IFRSs at the IASB effective dates

      The table below provides a summary of the pronouncements which will be mandatorily applied by entities for the first time at 31 March 2024, for various quarterly reporting periods:

      Pronouncement Effective date* Mandatory at 31 March 2024?
      1st qtrs 2nd qtrs 3rd qtrs Full yrs
      STANDARDS
      IFRS 17 Insurance Contracts 1 January 2023 ** Yes Yes Yes
      IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information 1 January 2024 Yes - - -
      IFRS S2 Climate-related Disclosures 1 January 2024 Yes - - -
      AMENDMENTS
      Amendments to IFRS 17 1 January 2023 ** Yes Yes Yes
      Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) 1 January 2023 ** Yes Yes Yes
      Definition of Accounting Estimates (Amendments to IAS 8) 1 January 2023 ** Yes Yes Yes
      Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) 1 January 2023 ** Yes Yes Yes
      Initial Application of IFRS 17 and IFRS 9 — Comparative Information (Amendment to IFRS 17) available on first application of IFRS 17 Optional Optional Optional Optional
      International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) — Application of the exception and disclosure of that fact issued on 23 May 2023 with immediate effectiveness ** ** ** Yes
      International Tax Reform — Pillar Two Model Rules (Amendments to the 'IFRS for SMEs' Standard)  — Application of the exception and disclosure of that fact issued on 29 September 2023 with immediate effectiveness ** ** Yes Yes
      Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) 1 January 2024 Yes - - -
      Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) 1 January 2024 Yes - - -
      Non-current Liabilities with Covenants (Amendments to IAS 1) 1 January 2024 Yes - - -
      Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) 1 January 2024 Yes - - -

      * Generally annual periods beginning on or after the date indicated, may only apply to first-time adopters in some limited cases (see the detailed information for each pronouncement below for full details).

      ** This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

      More information about these pronouncements, and all new and revised pronouncements, is set out below.

       

      Financial statement considerations in adopting new and revised pronouncements

      Where new and revised pronouncements are applied for the first time, there can be consequential impacts on annual financial statements, including:

      • Impact of transitional provisions. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors contains a general requirement that changes in accounting policies are retrospectively applied, but this does not apply to the extent an individual pronouncement has specific transitional provisions.
      • Disclosures about changes in accounting policies. Where an entity changes its accounting policy as a result of the initial application of an IFRS and it has an effect on the current period or any prior period, IAS 8 requires the disclosure of a number of matters, e.g. the title of the IFRS, the nature of the change in accounting policy, a description of the transitional provisions, and the amount of the adjustment for each financial statement line item affected
      • Third statement of financial position. IAS 1 Presentation of Financial Statements requires the presentation of a third statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statements in a number of situations, including if an entity applies an accounting policy retrospectively and the retrospective application has a material effect on the information in the statement of financial position at the beginning of the preceding period
      • Earnings per share (EPS). Where applicable to the entity, IAS 33 Earnings Per Share requires basic and diluted EPS to be adjusted for the impacts of adjustments result from changes in accounting policies accounted for retrospectively and IAS 8 requires the disclosure of the amount of any such adjustments.

      Whilst disclosures associated with changes in accounting policies resulting from the initial application of new and revised pronouncements are less in interim financial reports under IAS 34 Interim Financial Reporting, some disclosures are required, e.g. description of the nature and effect of any change in accounting policies and methods of computation.

       

      New or revised standards


      IFRS 17 Insurance Contracts

      IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 Insurance Contracts as of 1 January 2023.

      Issued: 18 May 2017

      Effective date:

      Applicable to annual reporting periods beginning on or after 1 January 2023
      Endorsed for use in the EU, albeit with an optional exemption from applying the annual cohort requirement.

      First quarters ending 31 March 2024:

      [Note 1]

      Second quarters ending 31 March 2024:

      Mandatory

      Third quarters ending 31 March 2024:

      Mandatory

      Annual periods ending 31 March 2024:

      Mandatory


      IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information

      IFRS S1 sets out overall requirements for sustainability-related financial disclosures with the objective to require an entity to disclose information about its sustainability-related risks and opportunities that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity.

      Issued: 26 June 2023 

      Effective date:

      Applicable to annual reporting periods beginning on or after 1 January 2024
      Will not be endorsed for use in the EU

      First quarters ending 31 March 2024:

      Mandatory

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


      IFRS S2 Climate-related Disclosures

      IFRS S2 sets out the requirements for identifying, measuring and disclosing information about climate-related risks and opportunities that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity.

      Issued: 26 June 2023 

      Effective date:

      Applicable to annual reporting periods beginning on or after 1 January 2024
      Will not be endorsed for use in the EU

      First quarters ending 31 March 2024:

      Mandatory

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


       

       

      Amendments


      Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

      The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current.

      Issued: 23 January 2020

      Effective date:

      Annual reporting periods beginning on or after 1 January 2024 

      First quarters ending 31 March 2024:

      Mandatory

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


      Amendments to IFRS 17

      Amends IFRS 17 to address concerns and implementation challenges that were identified after IFRS 17 Insurance Contracts was published in 2017. The main changes are:

      • Deferral of the date of initial application of IFRS 17 by two years to annual periods beginning on or after 1 January 2023
      • Additional scope exclusion for credit card contracts and similar contracts that provide insurance coverage as well as optional scope exclusion for loan contracts that transfer significant insurance risk
      • Recognition of insurance acquisition cash flows relating to expected contract renewals, including transition provisions and guidance for insurance acquisition cash flows recognised in a business acquired in a business combination
      • Clarification of the application of IFRS 17 in interim financial statements allowing an accounting policy choice at a reporting entity level
      • Clarification of the application of contractual service margin (CSM) attributable to investment-return service and investment-related service and changes to the corresponding disclosure requirements
      • Extension of the risk mitigation option to include reinsurance contracts held and non-financial derivatives
      • Amendments to require an entity that at initial recognition recognises losses on onerous insurance contracts issued to also recognise a gain on reinsurance contracts held
      • Simplified presentation of insurance contracts in the statement of financial position so that entities would present insurance contract assets and liabilities in the statement of financial position determined using portfolios of insurance contracts rather than groups of insurance contracts
      • Additional transition relief for business combinations and additional transition relief for the date of application of the risk mitigation option and the use of the fair value transition approach

      Issued: 25 June 2020

      Effective date:

      Annual reporting periods beginning on or after 1 January 2023

      First quarters ending 31 March 2024:

      [Note 1]

      Second quarters ending 31 March 2024:

      Mandatory

      Third quarters ending 31 March 2024:

      Mandatory

      Annual periods ending 31 March 2024:

      Mandatory


      Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)

      The amendments require that an entity discloses its material accounting policies, instead of its significant accounting policies. Further amendments explain how an entity can identify a material accounting policy. Examples of when an accounting policy is likely to be material are added. To support the amendment, the Board has also developed guidance and examples to explain and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2.

      Issued: 12 February 2021

      Effective date:

      Annual reporting periods beginning on or after 1 January 2023
      Endorsed for use in the EU, however, as practice statements are not endorsed for application in the European Union, the amendments to IFRS Practice Statement 2 have not been endorsed.

      First quarters ending 31 March 2024:

      [Note 1]

      Second quarters ending 31 March 2024:

      Mandatory

      Third quarters ending 31 March 2024:

      Mandatory

      Annual periods ending 31 March 2024:

      Mandatory


      Definition of Accounting Estimates (Amendments to IAS 8)

      The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change in accounting estimate that results from new information or new developments is not the correction of an error.

      Issued: 12 February 2021

      Effective date:

      Annual reporting periods beginning on or after 1 January 2023

      First quarters ending 31 March 2024:

      [Note 1]

      Second quarters ending 31 March 2024:

      Mandatory

      Third quarters ending 31 March 2024:

      Mandatory

      Annual periods ending 31 March 2024:

      Mandatory


      Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)

      The amendments clarify that the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition.

      Issued: 7 May 2021 

      Effective date:

      Annual reporting periods beginning on or after 1 January 2023

      First quarters ending 31 March 2024:

      [Note 1]

      Second quarters ending 31 March 2024:

      Mandatory

      Third quarters ending 31 March 2024:

      Mandatory

      Annual periods ending 31 March 2024:

      Mandatory


      Initial Application of IFRS 17 and IFRS 9 — Comparative Information (Amendment to IFRS 17)

      The amendment permits entities that first apply IFRS 17 and IFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of IFRS 9 had been applied to that financial asset before.

      Issued: 9 December 2021

      Effective date:

      An entity that elects to apply the amendment applies it when it first applies IFRS 17

      First quarters ending 31 March 2024:

      Optional

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


      Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)

      The amendment clarifies how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.

      Issued: 22 September 2022

      Effective date:

      Annual reporting periods beginning on or after 1 January 2024

      First quarters ending 31 March 2024:

      Mandatory

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


      Non-current Liabilities with Covenants (Amendments to IAS 1)

      The amendment clarifies how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability.

      Issued: 31 October 2022

      Effective date:

      Annual reporting periods beginning on or after 1 January 2024

      First quarters ending 31 March 2024:

      Mandatory

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


      International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12)

      The amendments provide a temporary exception to the requirements regarding deferred tax assets and liabilities related to pillar two income taxes.

      Issued: 23 May 2023

      Effective date:

      The application of the exception and disclosure of that fact is effective immediately, the other disclosure requirements are effective for annual reporting periods beginning on or after 1 January 2023, but not required in any interim financial statements for 2023

      First quarters ending 31 March 2024:

      [Note 1]

      Second quarters ending 31 March 2024:

      [Note 1]

      Third quarters ending 31 March 2024:

      [Note 1]

      Annual periods ending 31 March 2024:

      Mandatory (exception)


      Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)

      The amendments add disclosure requirements, and ‘signposts’ within existing disclosure requirements, that ask entities to provide qualitative and quantitative information about supplier finance arrangements.

      Issued: 25 May 2023

      Effective date:

      Annual reporting periods beginning on or after 1 January 2024
      Not yet endorsed for use in the EU

      First quarters ending 31 March 2024:

      Mandatory

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


      Lack of Exchangeability (Amendments to IAS 21)

      The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not.

      Issued: 15 August 2023

      Effective date:

      Annual reporting periods beginning on or after 1 January 2025
      Not yet endorsed for use in the EU

      First quarters ending 31 March 2024:

      Optional

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


      International Tax Reform — Pillar Two Model Rules (Amendments to the 'IFRS for SMEs' Standard)

      The amendments align the standard's requirements with similar amendments to IAS 12 Income Taxes issued in May 2023.

      Issued: 29 September 2023

      Effective date:

      The application of the exception and disclosure of that fact is effective immediately, the other disclosure requirements are effective for annual reporting periods beginning on or after 1 January 2023, but not required in any interim financial statements for 2023
      Will not be endorsed for use in the EU

      First quarters ending 31 March 2024:

      [Note 1]

      Second quarters ending 31 March 2024:

      [Note 1]

      Third quarters ending 31 March 2024:

      Mandatory (exception)

      Annual periods ending 31 March 2024:

      Mandatory (exception)


      Amendments to the SASB standards to enhance their international applicability

      The amendments remove and replace jurisdiction-specific references and definitions in the SASB standards, without substantially altering industries, topics or metrics

      Issued: 19 December 2023 

      Effective date:

      Annual reporting periods beginning on or after 1 January 2025
      Will not be endorsed for use in the EU

      First quarters ending 31 March 2024:

      Optional

      Second quarters ending 31 March 2024:

      Optional

      Third quarters ending 31 March 2024:

      Optional

      Annual periods ending 31 March 2024:

      Optional


      Editorial Corrections (various)

      The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since the beginning of calendar 2021, such corrections have been made in June 2021, October 2021, December 2021, January 2022, July 2022, October 2022, August 2023, and September 2023.

      Note: For details of these editorial corrections, see our IASB editorial corrections page.

      Effective date:

      As minor editorial corrections, these changes are effectively immediately applicable under IFRS


       

       

      Correction list for hyphenation

      These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.