At its meeting on November 14, 2018, the International Accounting Standards Board (the Board) discussed the implications of exploring amendments to IFRS 17 on the effective date of IFRS 17 and the expiry date of the temporary exemption from applying IFRS 9, Financial Instruments, in IFRS 4, Insurance Contracts. The Board tentatively decided that: (i) the mandatory effective date of IFRS 17 should be deferred by one year, so that entities would be required to apply IFRS 17 for annual periods beginning on or after January 1, 2022; and (ii) consequently, the fixed expiry date for the temporary exemption in IFRS 4 from applying IFRS 9 should be amended so that all entities would be required to apply IFRS 9 for annual periods beginning on or after January 1, 2022. The Board will continue its discussions at its December 2018 meeting.

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

At its meeting on November 14, 2018, the IASB tentatively decided to permit early application of the proposed amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets. The Board plans to publish its exposure draft in December 2018.

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

At its meeting on November 14, 2018, the IASB met to discuss the objective of management commentary and guidance supporting the objective. The IASB staff recommended that the objective of management commentary should be to give context for the financial statements by providing primary users with historical financial and operational information and analysis that is useful in assessing the prospects for the entity’s future net cash inflows, and its management’s stewardship of the entity’s economic resources.

The Board did not formally vote at this meeting but agreed in broad terms with that objective, and with the staff’s recommendations for guidance to support it. However, the Board asked the staff to consider whether it is possible to provide further clarity on:

1. the roles that historical information and forward-looking information play in management commentary; and
2. the difference between the objective of management commentary and the objective of financial statements. The Board expects to discuss the application of materiality in management commentary and principles of management commentary in January 2019 and at subsequent Board meetings.

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

At its meeting on November 14, 2018, given its plans to consider whether to explore amendments to IFRS 17 and given the criteria for assessing any such potential amendments, the IASB tentatively decided that the mandatory effective date of IFRS 17 should be deferred by one year, so that entities would be required to apply IFRS 17 for annual periods beginning on or after January 1, 2022. Consequently, the IASB also tentatively decided that the fixed expiry date for the temporary exemption in IFRS 4 from applying IFRS 9 should be amended so that all entities would be required to apply IFRS 9 for annual periods beginning on or after January 1, 2022. The Board will continue its discussions at its December 2018 meeting.

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

At its meeting on November 14, 2018, given its plans to consider whether to explore amendments to IFRS 17 and given the criteria for assessing any such potential amendments, the IASB tentatively decided that the mandatory effective date of IFRS 17 should be deferred by one year, so that entities would be required to apply IFRS 17 for annual periods beginning on or after January 1, 2022. Consequently, the IASB also tentatively decided that the fixed expiry date for the temporary exemption in IFRS 4 from applying IFRS 9 should be amended so that all entities would be required to apply IFRS 9 for annual periods beginning on or after January 1, 2022. The Board will continue its discussions at its December 2018 meeting.

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

At its meeting on November 14, 2018, the IASB met to discuss: (i) earnings before interest, tax, depreciation and amortisation (EBITDA); (ii) whether to develop templates and examples to assist preparers of financial statements; and (iii) possible amendments to the presentation requirements in IAS 1, Presentation of Financial Statements, for minimum line items in the statement(s) of financial performance. The Board tentatively decided not to require presentation of EBITDA in the statement(s) of financial performance, and not to require its disclosure in the notes. The Board also tentatively decided (a) to develop illustrative examples (including for different types of entities) to assist preparers of financial statements; and (b) to clarify that certain line items are required to be presented separately in the statement(s) of financial performance. The Board will continue discussing topics within the scope of the project at future Board meetings.

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

At its meeting on November 14, 2018, the IASB met to discuss how to proceed with this project, having considered the feedback on the proposed amendments. The Board tentatively decided to proceed with the proposed amendments with some modifications. Those modifications might include: (a) clarifications on how entities identify the costs related to sales of items produced before an item of property, plant and equipment is capable of operating in the manner intended by management; and (b) disclosure and presentation requirements. The Board will discuss the modifications to the proposed amendments at a future meeting.

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

At its meeting on November 14, 2018, the IASB met to consider information provided by the IFRS Interpretations Committee (Committee) about how an entity might apply existing IFRS Standards to account for holdings of cryptocurrencies and initial coin offerings. The Board also considered the Committee’s advice on whether standard-setting is necessary for holdings of cryptocurrencies. The Board decided not to add to its work plan a project on holdings of cryptocurrencies or initial coin offerings at this time. Instead, the Board decided to monitor the development of cryptoassets and decided to ask the Committee to consider publishing an agenda decision that would explain how entities apply existing IFRS Standards to holdings of cryptocurrencies. The Committee will consider the Board’s request at a future Committee meeting.

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

At its meeting on November 15, 2018, the IASB continued its discussion of comments on the Exposure Draft. The Board tentatively decided that, as proposed in the Exposure Draft, IAS 1 should require an entity to classify a liability as current if the entity does not have a right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period.

The Board tentatively decided to add to IAS 1 a reminder that an entity’s right to defer settlement must have substance. The Board tentatively decided to clarify in IAS 1 that:

1. an entity’s right to defer settlement is not affected by: (i) management’s expectations about whether the entity will exercise that right; and (ii) settlement of a liability between the end of the reporting period and the date the financial statements are authorised for issue; and
2. although these factors do not affect the classification of a liability, an entity may need to disclose information about them to comply with the disclosure requirements of IFRS Standards. The Board discussed differences between the requirements of IAS 1 and proposed requirements on the classification of debt being developed by the US FASB and tentatively decided not to consider further amendments to IAS 1. The Board will discuss classification of liabilities with equity-settlement features at a future meeting.

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

At its meeting on November 15, 2018, the IASB met to discuss the accounting model being developed for activities subject to "defined rate regulation". The Board discussed and made tentative conclusions with respect to:

1. interactions between the model and the IFRS Standards, including (i) exceptions to the requirements of other IFRS Standards; (ii) guidance on applicability of other IFRS Standards; (iii)isolation of regulatory items by presentation and disclosure; and (iv) location of requirements and guidance on interactions with other IFRS Standards; and
2. presentation and disclosure, including (i) presentation; and (ii) disclosure objectives, disclosure requirements and illustrative disclosures. The Board expects to continue its discussions on other aspects of the model at a future meeting.

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

At its meeting on November 15, 2018, the Board added a research project to update IFRS 3 so that the standard instead refers to the Conceptual Framework for Financial Reporting, which the Board issued in March 2018.

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