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Location: London
On January 22, 2016, the International Accounting Standards Board issued the Update summary of its meeting on January 19-20, 2016.
Topics addressed at this meeting included:
Review the IASB Update on the IASB's Web site.
At its meeting on January 19-20, 2016, the IASB met to deliberate the remainder of the planned technical decisions on the accounting for insurance contracts. The Board (i) tentatively decided to require a loss for onerous contracts to be recognized only when the contractual service margin is negative for a group of contracts, and that the group should comprise contracts that at inception: (a) have cash flows that the entity expects will respond in similar ways to key drivers of risk in terms of amount and timing; and (b) had similar expected profitability; (ii) instructed the staff to develop the wording during the drafting process to improve the clarity of the requirements in respect of the allocation of the contractual service margin; (iii) tentatively decided that there should be no exception to the level of aggregation for determining onerous contracts or the allocation of the contractual service margin when regulation affects the pricing of contracts; and (iv) tentatively decided to require an entity to specify at the inception of the contract how it viewed its discretion under the contract, and to use that specification to distinguish between the effect of changes in market variables and changes in discretion. The Board have now completed the planned technical decisions on the accounting for insurance contracts. At the Board’s February 2016 meeting, the staff plan to ask the Board to review the due process steps taken in developing the new Insurance Contracts Standard and to ask permission to begin the balloting process.
At its meeting on January 19-20, 2016, the IASB met to deliberate the remainder of the planned technical decisions on the accounting for insurance contracts. The Board
The Board have now completed the planned technical decisions on the accounting for insurance contracts. At the Board’s February 2016 meeting, the staff plan to ask the Board to review the due process steps taken in developing the new Insurance Contracts Standard and to ask permission to begin the balloting process.
Review the IASB Update on the IASB's Web site.
At its meeting on January 19-20, 2016, the IASB continued to consider the staff’s findings on the research project on present value measurements—discount rates. Specifically, the Board discussed present value measurement methodology and treatment of taxes, present value measurement presentation and disclosures, present value measurement objectives and the use of present value measurements in IFRS Standards. The Board was not asked to make any decisions.
At its meeting on January 19-20, 2016, the IASB continued to consider the staff’s findings on the research project on present value measurements—discount rates. Specifically, the Board discussed present value measurement methodology and treatment of taxes, present value measurement presentation and disclosures, present value measurement objectives and the use of present value measurements in IFRS Standards. The Board was not asked to make any decisions.
Review the IASB Update on the IASB's Web site.
At its meeting on January 19-20, 2016, the IASB discussed the findings of the research undertaken so far on the measurement proposals included in the ED. In particular, the Board discussed the feedback received from users, preparers and the Global Preparers Forum, and discussed the outcome of the academic literature review undertaken. In addition, the Board noted that it will use the work carried out during this research by feeding it into the Post-implementation Review (PIR) of IFRS 13, Fair Value Measurement. The Board will consider further work on this topic if the PIR identifies this as a critical area in which entities have encountered significant problems when implementing the Standard.
At its meeting on January 19-20, 2016, the IASB discussed the findings of the research undertaken so far on the measurement proposals included in the ED. In particular, the Board discussed the feedback received from users, preparers and the Global Preparers Forum, and discussed the outcome of the academic literature review undertaken. In addition, the Board noted that it will use the work carried out during this research by feeding it into the Post-implementation Review (PIR) of IFRS 13, Fair Value Measurement.
The Board will consider further work on this topic if the PIR identifies this as a critical area in which entities have encountered significant problems when implementing the Standard.
Review the IASB Update on the IASB's Web site.
At its meeting on January 19-20, 2016, the IASB met to consider the following in relation to the final amendments Clarifications to IFRS 15: transition requirements; effective date; and re-exposure, due process and permission to ballot. With respect to Transition requirements, the Board confirmed its previous decisions: (i) to require an entity to apply the clarifying amendments to IFRS 15 retrospectively; and (ii) that no special transition provisions are needed for a first-time adopter. With respect to effective date, the Board tentatively decided: (i) to require an entity to apply Clarifications to IFRS 15 for annual reporting periods beginning on or after January 1, 2018; and (ii) to permit an entity to apply the clarifying amendments early. With respect to re-exposure, due process and permission to ballot, all of the Board members confirmed that they are satisfied that the Board has completed all of the necessary due process steps on the project to date and instructed the staff to commence the drafting process for the final amendments to IFRS 15. One Board member indicated an intention to dissent from issuing the final amendments to IFRS 15. The Board expects to issue the final amendments Clarifications to IFRS 15 in March 2016
At its meeting on January 19-20, 2016, the IASB met to consider the following in relation to the final amendments Clarifications to IFRS 15: transition requirements; effective date; and re-exposure, due process and permission to ballot.
With respect to Transition requirements, the Board confirmed its previous decisions:
With respect to effective date, the Board tentatively decided:
With respect to re-exposure, due process and permission to ballot, all of the Board members confirmed that they are satisfied that the Board has completed all of the necessary due process steps on the project to date and instructed the staff to commence the drafting process for the final amendments to IFRS 15. One Board member indicated an intention to dissent from issuing the final amendments to IFRS 15.
The Board expects to issue the final amendments Clarifications to IFRS 15 in March 2016
Review the IASB Update on the IASB's Web site.