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Location: London
On February 19, 2016, the International Accounting Standards Board issued the Update summary of its meeting on February 16-17, 2016.
Topics addressed at this meeting included:
Review the IASB Update on the IASB's Web site.
At its meeting on February 16-17, 2016, the IASB met to review the due process steps that the Board has taken so far in developing the new insurance contracts Standard and also considered the re-exposure criteria in the Due Process Handbook. All of the Board members confirmed that they are satisfied that the Board has completed all the necessary due process steps on the Insurance Contracts project to date and instructed the staff to commence the drafting process. No Board members intend, at this time, to dissent from issuance of the Standard on insurance contracts.
At its meeting on February 16-17, 2016, the IASB met to review the due process steps that the Board has taken so far in developing the new insurance contracts Standard and also considered the re-exposure criteria in the Due Process Handbook. All of the Board members confirmed that they are satisfied that the Board has completed all the necessary due process steps on the Insurance Contracts project to date and instructed the staff to commence the drafting process. No Board members intend, at this time, to dissent from issuance of the Standard on insurance contracts.
At its meeting on February 16-17, 2016, the IASB considered how the proposals in its ED should be applied when conditions in the lending agreement are tested or reviewed after the end of the reporting period. The Board tentatively decided that: (a) compliance with any conditions in the lending agreement should be assessed as at the reporting date; (b) any requirement in the lending agreement to test compliance with those conditions at a date after the end of the reporting period should not change the requirement for classification to be based on an assessment of compliance as at the end of the reporting period; (c) the proposed amendments should require that compliance with a condition as at the end of the reporting period should determine whether a right that is subject to that condition should affect classification (as described in paragraph BC4 of the ED); (d) when an agreement includes a periodic review clause, in which the lender has the right to demand repayment, the entity has a right to defer settlement only up to the date of the periodic review; and (e) the Board’s proposals, that classification of a liability is based on rights in existence at the end of the reporting period and compliance with any conditions is assessed as at the end of the reporting period, should not be amended in respect of a periodic review clause.
At its meeting on February 16-17, 2016, the IASB considered how the proposals in its ED should be applied when conditions in the lending agreement are tested or reviewed after the end of the reporting period. The Board tentatively decided that:
At its meeting on February 16-17, 2016, the IASB discussed the further development of the three approaches (Alpha, Beta and Gamma) it had identified as potential ways of improving IAS 32, Financial Instruments: Presentation. Those three approaches classify claims as liabilities or equity based on different features of claims that are relevant to different assessments of the entity’s financial position and financial performance. The Board’s discussions focused on developing Approach Gamma, because it distinguishes claims based on a combination of the features used to distinguish claims in the other approaches.
At its meeting on February 16-17, 2016, the IASB discussed the further development of the three approaches (Alpha, Beta and Gamma) it had identified as potential ways of improving IAS 32, Financial Instruments: Presentation. Those three approaches classify claims as liabilities or equity based on different features of claims that are relevant to different assessments of the entity’s financial position and financial performance. The Board’s discussions focused on developing Approach Gamma, because it distinguishes claims based on a combination of the features used to distinguish claims in the other approaches.
Review the IASB Update on the IASB's Web site.