At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) tentatively decided to include the following minor amendments to IFRS 17 (and other Standards amended by IFRS 17) as part of the Annual Improvements to IFRSs 2018-2020 Cycle:

1. to amend the terminology in paragraph 27 of IFRS 17 to include insurance acquisition cash flows relating to insurance contracts in the group yet to be issued;
2. to amend the terminology in paragraph 28 of IFRS 17 to achieve the intended timing of recognition of contracts within a group;
3. to remove requirements that could result in double-counting of the risk-adjustment for non-financial risk in the insurance contracts reconciliation disclosures and revenue analyses;
4. to correct the terminology in the sensitivity analysis disclosures;
5. to exclude business combinations under common control from the scope of the requirements for business combinations in IFRS 17;
6. to amend IFRS 3 Business Combinations so that the amendment made by IFRS 17 on the classification of insurance contracts applies prospectively;
7. to amend IFRS 7 Financial Instruments: Disclosures, IFRS 9 Financial Instruments and IAS 32 Financial Instruments: Presentation to achieve the intended scopes of these financial instruments Standards and the scope of IFRS 17, particularly with respect to insurance contracts held;
8. to add an explanation that, in Example 9 of the Illustrative Examples on IFRS 17, the time value of the guarantee changes over time.

The Board also tentatively decided to propose to clarify the definition of the coverage period for insurance contracts with direct participation features. The proposed amendment would clarify that the coverage period for such contracts includes periods in which the entity provides investment-related services.

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At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) tentatively decided that, when developing disclosure objectives and requirements in future, a member of the IFRS Taxonomy team will be assigned in an advisory capacity to each of the IASB's active projects. In addition, the Board tentatively decided that it will further develop a five-step approach to developing disclosure objectives and requirements. This will involve consideration of disclosure objectives and requirements at all stages of a project by: Step 1—understanding issues; Step 2—understanding what stakeholders want and why; Step 3—understanding what disclosures would be required to support proposed recognition and measurement requirements; Step 4—performing a cost/benefit analysis; and Step 5—understanding and documenting the effects of the proposed disclosure objectives and requirements.

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At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) tentatively decided that, when developing disclosure objectives and requirements in future, a member of the IFRS Taxonomy team will be assigned in an advisory capacity to each of the IASB's active projects. In addition, the Board received a summary of the work performed by the staff relating to the selection of one or two Standards for the IASB's Targeted Standards-level Review of Disclosures. The IASB discussed feedback received to date on a shortlist of Standards. The IASB was not asked to make any decisions.

Review the IASB Update and podcast on the Board's Web site.

At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) tentatively decided that, when developing disclosure objectives and requirements in future, a member of the IFRS Taxonomy team will be assigned in an advisory capacity to each of the IASB's active projects. In addition, the Board tentatively decided:

(i) (a) to confirm the proposed amendment to include the concept of 'obscuring information' in the bold definition of material; and (b) to replace the proposed wording explaining 'obscuring information' in the explanatory paragraphs with a clearer description and examples;

(ii) (a) to confirm the proposed amendment(s): that align terminology in the definition of material with terminology in the Conceptual Framework for Financial Reporting; and (b) that will replace the term 'could influence' with 'could reasonably be expected to influence' in the definition of material;

(iii) to replace the definition of material in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors with a reference to the definition of material and explanatory paragraphs in IAS 1 Presentation of Financial Statements; and (iv) that the effective date of amendments be for annual periods beginning on or after 1 January 2020 with early application permitted.

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At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) discussed the derivative financial instruments that will be addressed in the first phase of the Dynamic Risk Management (DRM) project. The IASB also discussed designation and de-designation of derivatives. The IASB tentatively decided: the DRM model (a) should permit the use of interest rate swaps, including basis swaps and forward starting swaps, in addition to forward rate agreements; (b) options would be considered in the second phase of the model depending on the feedback received; (c) the DRM model should require formal designation and documentation of derivatives; and (d) the DRM model should require all designated derivatives to have a counterparty external to the reporting entity. The Board also started the discussion of financial performance in the context of the DRM accounting model and will continue these discussions in future meetings.

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At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) met to discuss:  

• an analysis of the project areas in which the tentative Board decisions applying to non-financial entities could apply with little or no change to financial entities, including decisions about: management performance measures; aggregation and disaggregation; and other comprehensive income.
• an analysis of project areas in which the Board would need to adjust the tentative decisions to apply them to financial entities, including decisions about: profit before financing and income tax; income and expenses from investments; and the statement of cash flows.
• a summary of research on reporting practices for a sample of financial entities.

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At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) continued its discussion of current value approaches for business combinations under common control that affect non-controlling shareholders and directed the staff to develop an approach based on the acquisition method set out in IFRS 3 Business Combinations and to consider whether and how that method should be modified to provide the most useful information about business combinations under common control that affect non-controlling shareholders. The Board decided not to explore the 'full fair value approach'. Under that approach, a receiving entity would recognize:

• a contribution to equity, or a distribution from equity, measured as the difference between the fair value of the consideration transferred and the fair value of the acquired business; and
• goodwill measured as the excess of the fair value of the acquired business over the identifiable net assets acquired. The Board expects to continue discussion at future meetings on methods of accounting for transactions within the scope of the project.

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On June 20, 2018, the Board added a research project on IBOR reform to its active research.

Review the IASB Update and podcast on the Board's Web site.