At its meeting on November 19, 2019, the IASB met to discuss how an entity should be required to classify, in the statement of profit or loss, income and expenses from investments in integral associates and joint ventures other than the share of profit or loss from such investments. The Board tentatively decided to:

1. require an entity to classify income and expenses from integral associates and joint ventures in the integral associates and joint ventures category of the statement of profit or loss; and
2. specify that income and expenses from integral associates and joint ventures include, in addition to the share of profit or loss of integral associates and joint ventures: (i) impairment losses and reversals of impairment losses on integral associates and joint ventures; and (ii) gains or losses on the disposal of integral associates and joint ventures.

The IASB staff will continue drafting the Exposure Draft.

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

At its meeting on November 19, 2019, the IASB met to discuss items of information that could be used to meet the disclosure objectives the Board has tentatively decided on for IAS 19, Employee Benefits, and IFRS 13, Fair Value Measurement. The Board discussed and made tentative decisions with respect to (i) use of language considerations (Agenda Paper 11A); (ii) IAS 19 items of information for disclosure (Agenda Paper 11B); and (iii) IFRS 13 items of information for disclosure (Agenda Paper 11C).

At a future meeting, the Board will:

1. further discuss items of information to meet the specific disclosure objective about understanding the expected future cash flows resulting from the defined benefit obligation and the nature of those cash flows;
2. consider whether a separate disclosure objective, and items of information, should be included in IFRS 13 about understanding the effect of fair value measurements on the statement of financial performance;
3. discuss a comparison of the Board’s tentative decisions about IAS 19 disclosure to the disclosure requirements in the Standard; and
4. discuss lessons learned through the targeted standards-level review of disclosures testing process and resulting potential amendments to the Board’s draft guidance for developing and drafting disclosure objectives and requirements in future.

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

At its meeting on November 20, 2019, the IASB met to discuss a summary of feedback on the Exposure Draft. The Board was not asked to make any decisions. At a future Board meeting, the Board will redeliberate aspects of the Exposure Draft proposals in the light of matters raised by respondents.

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

At its meeting on November 20, 2019, the IASB met to discuss how the revised IFRS Practice Statement should explain what an entity’s business model is. The Board tentatively decided that the Practice Statement should, in explaining ‘business model’, refer to:

1. value the entity creates for itself. The Practice Statement should also make clear that the notion of value created for an entity is related to the entity’s ability to generate cash flows;
2. the link between an entity’s business model and the entity’s stated purpose;
3. the elements of the business model—that is, its inputs, processes and outputs; and
4. a business model being a matter of fact and observable through an entity’s actions.

The Board also tentatively decided that the Practice Statement should require an entity’s management to discuss indirect wider consequences or impacts of the operation of the entity’s business model if those impacts could affect the entity’s ability to generate cash flows in the future. At a future meeting the Board will discuss the objective of describing an entity’s business model in management commentary and possible guidance on the types of information about the entity’s business model that should be included in management commentary.

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

At its meeting on November 20, 2019, the IASB met to discuss the feedback on its Exposure Draft and to decide on its plan for redeliberating some of the matters raised by respondents The Board received a summary of comment letters on the Exposure Draft, but was not asked to make any decisions. The Board tentatively decided that it will confirm at a future meeting the proposed amendments on the following topics without substantive redeliberation:

1. the scope exclusion for loans;
2. the contractual service margin attributable to investment services—coverage units for insurance contracts with direct participation features;
3. presentation in the statement of financial position—portfolio instead of group level; (iv) the applicability of the risk mitigation option—reinsurance contracts held; (v) transition relief for business combinations; and
4. transition reliefs for the risk mitigation option—application from the transition date and the option to apply the fair value approach.

The Board also tentatively decided that it will consider further the feedback on the following topics:

1. the proposed scope exclusion for credit cards;
2. the proposed amendment for expected recovery of insurance acquisition cash flows;
3. the proposed amendment for contractual service margin attributable to investment services—coverage units for insurance contracts without direct participation features, disclosures and terminology;
4. the proposed amendment for reinsurance contracts held—recovery of losses;
5. the applicability of the risk mitigation option—non-derivative financial instruments at fair value through profit or loss;
6. the proposed effective date of IFRS 17;
7. the proposed extension of the IFRS 9 temporary exemption in IFRS 4;
8. transition—the prohibition from applying the risk mitigation option retrospectively;
9. proposed minor amendments;
10. the level of aggregation—annual cohorts for some specific insurance contracts; (xi) business combinations—contracts acquired in their settlement period; (xii) interim financial statements; and
11. additional specific transition modifications and reliefs.

The Board also tentatively decided that it will not consider further the feedback on the following topics:

1. presentation in the statement of financial position—premiums receivable and claims payable;
2. the risk mitigation option for insurance contracts without direct participation features;
3. the effective date—comparative information on initial application of IFRS 17;
4. the level of aggregation—annual cohorts for all insurance contracts other than some specific contracts;
5. cash flows in the boundary of a reinsurance contract held;
6. subjectivity in determining discount rates and the risk adjustment for non-financial risk;
7. the risk adjustment for non-financial risk in a consolidated group of entities;
8. the discount rate used to determine adjustments to the contractual service margin;
9. the other comprehensive income option for insurance finance income or expenses;
10. business combinations—classification of contracts acquired;
11. the scope of the variable fee approach—reinsurance contracts held and reinsurance contracts issued;
12. mutual entities issuing insurance contracts;
13. transition—general optionality and flexibility in the modified retrospective approach; and
14. transition—reliefs in the full retrospective approach. At its future meetings, the Board will redeliberate some of the matters raised by respondents on the Exposure Draft.

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

At its meeting on November 20, 2019, the IASB met and discussed feedback on the Exposure Draft. In this regard:

1. subsidiary as a first-time adopter - the Board tentatively decided to amend IFRS 1 to permit a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure—using the amount reported by the parent—cumulative translation differences (CTD) for all foreign operations. This measurement is based on the parent’s date of transition to IFRSs. The amendment would also apply to associates and joint ventures that elect to apply paragraph D16(a) of IFRS 1;
2. fees in the '10 per cent' test for derecognition of financial liabilities, the Board tentatively decided to finalize the amendment to IFRS 9 proposed in the Exposure Draft with no changes;
3. lease incentive - the Board tentatively decided to finalize the amendment to illustrative Example 13 of IFRS 16 proposed in the Exposure Draft with no changes; and
4. taxation in fair value measurements - the Board tentatively decided to finalize the amendment to paragraph 22 of IAS 41 proposed in the Exposure Draft with no changes. The Board will consider the effective date and due process steps in relation to this project at a future meeting.

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