At its meeting on October 22, 2019, the IASB met to discuss the transition requirements and effective date for the amendments to IAS 16. The Board tentatively decided:

1. to require an entity to apply the amendments retrospectively only to items of PPE made available for use on or after the beginning of the earliest period presented when the entity first applies the amendments;
2. to provide no transition relief for first-time adopters; and
3. that the effective date of the amendments be for annual periods beginning on or after January 1, 2022, with earlier application permitted. The Board agreed that the amendments do not require re-exposure and no Board members indicated they intend to dissent from the issuance of amendments.

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

At its meeting on October 22, 2019, the IASB discussed feedback on the Exposure Draft. The Board tentatively decided:

1. to replace the examples proposed in the Exposure Draft with a clarification that the costs that relate directly to the contract consist of: (a) the incremental costs of fulfilling that contract, and (b) an allocation of costs that relate directly to fulfilling that and other contracts;
2. to amend paragraph 69 of IAS 37 to refer to assets that relate directly to a contract, rather than assets dedicated to a contract; and
3. regarding implementation: (a) not to permit the application of the amendments retrospectively applying IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; (b) to clarify within the transition requirements that an entity applies the amendments to contracts under which the entity has not yet fulfilled all its obligations at the beginning of the annual period in which the entity first applies the amendments; and (c) to provide no exception or exemption for first-time adopters.

The Board also decided not to expand the scope of the project to address: (a) the meaning of ‘economic benefits’ in the IAS 37 definition of an onerous contract; (b) whether and when an entity should combine or segment contracts; or (c) how an entity should measure an onerous contract liability. The Board will discuss the due process steps in relation to the project at a future meeting.

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

At its meeting on October 22, 2019, the IASB discussed feedback on the Exposure Draft. The Board tentatively decided:

1. to replace the examples proposed in the Exposure Draft with a clarification that the costs that relate directly to the contract consist of: (a) the incremental costs of fulfilling that contract, and (b) an allocation of costs that relate directly to fulfilling that and other contracts;
2. to amend paragraph 69 of IAS 37 to refer to assets that relate directly to a contract, rather than assets dedicated to a contract; and
3. regarding implementation: (a) not to permit the application of the amendments retrospectively applying IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; (b) to clarify within the transition requirements that an entity applies the amendments to contracts under which the entity has not yet fulfilled all its obligations at the beginning of the annual period in which the entity first applies the amendments; and (c) to provide no exception or exemption for first-time adopters.

The Board also decided not to expand the scope of the project to address: (a) the meaning of ‘economic benefits’ in the IAS 37 definition of an onerous contract; (b) whether and when an entity should combine or segment contracts; or (c) how an entity should measure an onerous contract liability. The Board will discuss the due process steps in relation to the project at a future meeting.

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

At its meeting on October 22, 2019, the IASB met and discussed this research project. Specifically, the Board discussed how a predecessor approach should be applied and tentatively decided: (i) that a receiving entity should recognize and measure assets and liabilities transferred in a business combination under common control at the carrying amounts included in the financial statements of the transferred entity; and (ii) that pre-combination information in the primary financial statements should be provided only about the receiving entity. At future meetings, the Board will complete its discussion of how a predecessor approach should be applied, discuss whether and how the acquisition method should be modified for transactions within the scope of the project, and discuss what information should be provided in the notes to the financial statements.

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

At its meeting on October 22, 2019, the IASB met to discuss: (a) possible guidance on enhancing qualitative characteristics to be included in an Exposure Draft of a revised IFRS Practice Statement 1, Management Commentary; and (b) research and preliminary analysis to be used in developing possible guidance on the business model. With respect to (a), the Board made a number of tentative decisions at the meeting. With respect to (b), the Board discussed an overview of the staff’s research on the business model and the staff’s preliminary analysis of questions that the Board will need to consider in developing possible guidance on the business model. The Board was not asked to make any decisions in this regard and will discuss possible guidance on the business model at a future meeting.

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

At its meeting on October 23, 2019, the IASB met and discussed potential accounting issues related to the classification and measurement of financial instruments that could arise as a result of interest rate benchmark reform (IBOR reform). Specifically, the Board discussed:

1. the assessment of whether a change in the contractual cash flows or terms of a financial instrument is a substantial modification, and the accounting requirements for modifications that are not substantial (that is, modifications that do not result in the derecognition of a financial instrument when IFRS 9 Financial Instruments is applied); and
2. modifications that result in the derecognition of existing financial instruments and the accounting implications of recognizing modified financial instruments as ‘new’ financial instruments.

The Board made a number of tentative decisions with respect to both (1) and (2) at its meeting. The Board will continue its discussions of this project at future meetings.

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

At its meeting on October 23, 2019, the IASB received a summary of the feedback from outreach on the Exposure Draft. No decisions were requested from the Board. At the November 2019 meeting, the staff plan to provide the Board with: (i) a summary of feedback from comment letters on the Exposure Draft; and (ii) a plan for redeliberating topics. The Board’s objective remains to issue any amendments to IFRS 17 in mid-2020.

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

At its meeting on October 23, 2019, the IASB met to discuss the project plan for this project. In particular, the Board discussed the practice issues that it could address in the scope of the project and an indicative project timeline outlining the expected commencement of Board deliberations on each issue. The Board was not asked to make any decisions. At future Board meetings, the Board will discuss practice issues in the scope of the project and the viability of potential solutions, beginning with the classification of financial instruments that will or may be settled in the issuer’s own equity instruments.

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

At its meeting on October 23, 2019, the IASB met to discuss its plan to consult stakeholders on the core elements of the DRM accounting model. After that consultation, the Board will decide how best to pursue the next phase of the project, which is to develop the DRM accounting model further. The Board was not asked to make any decisions. The Board will consider at a future meeting the feedback from its consultation on the core elements of the DRM accounting model.

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

At its meeting on October 23, 2019, the IASB discussed the feedback on its Exposure Draft and the project direction. The Board tentatively decided to revise the definition of accounting estimates to specify that:

1. accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty;
2. such monetary amounts are outputs of measurement techniques used in applying accounting policies; and
3. an entity uses judgements and/or assumptions in developing an accounting estimate.

The Board also tentatively decided to:

1. clarify that: (i) the effects of a change in an input and/or in a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors; and (ii) a change in accounting estimate that results from new information or new developments is not the correction of an error; and
2. specify that estimation techniques and valuation techniques are examples of measurement techniques an entity uses to develop accounting estimates.

And the Board tentatively decided:

1. not to amend the definition of accounting policies (i.e. to retain the existing definition of accounting policies in IAS 8);
2. to clarify that if a change is a change in accounting estimate, it cannot also be a change in accounting policy;
3. not to add discussion, that was included in paragraph 32B of the Exposure Draft, on whether selecting an inventory cost formula constitutes selecting an accounting policy;
4. to confirm the deletion of Example 3 from the Guidance on implementing IAS 8; and
5. add to the Guidance on implementing IAS 8 examples that illustrate how an entity would apply the definition of accounting estimates—this material would accompany, but not be part of, IAS 8.

The Board tentatively decided to finalize the amendments with the modifications set out above; and not to re-expose them. The Board will discuss the transition requirements and effective date of the amendments at a future meeting. It will also review the project’s due process steps.

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