On May 20, 2015, the IASB met to discuss proposed next steps on the project. The IASB tentatively decided (i) that it should first consider how the information needs of constituents concerning dynamic risk management activities could be addressed through disclosures before considering those areas that need to be addressed through recognition and measurement, (ii) to prioritize the consideration of interest rate risk and consider other risks at a later stage in the project; and (iii) to establish an Expert Advisory Panel at a later stage in the project.

The main features of the new Section are: (i) a restructuring transaction is a transfer of an integrated set of assets and/or liabilities, together with related program or operating responsibilities without consideration based primarily on the fair value of the individual assets and individual liabilities transferred; (ii) the net effect of a restructuring transaction should be recognized as revenue or as an expense by entities involved; (iii) a recipient should recognize individual assets and liabilities received in a restructuring transaction at their carrying amount with applicable adjustments at the restructuring date; (iv) a transferor and a recipient should not restate their financial position or results of operations; and (v) a transferor and a recipient should disclose sufficient information to enable users to assess the nature and financial effects of a restructuring transaction on their financial position and operations. The IASB will continue its discussions on the project at future meetings.

Review the IASB Update