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Location: London
On March 20, 2020, the International Accounting Standards Board (the Board) issued the Update summary of its meeting held on March 17 and 19, 2020.
The topics for discussion were:
Review the IASB Update and podcast on the Board's Web site.
At its meeting on March 17, 2020, the IASB met to complete its discussions of the feedback on its Exposure Draft. The Board tentatively decided (i) to defer the effective date of IFRS 17 incorporating the amendments to annual reporting periods beginning on or after January 1, 2023; and (ii) to extend the fixed expiry date of the temporary exemption in IFRS 4 from applying IFRS 9 to annual reporting periods beginning on or after January 1, 2023. All of the Board members confirmed that they were satisfied that the Board has complied with the applicable due process requirements and has, in particular, undertaken sufficient consultation and analysis to begin the process for balloting the amendments to IFRS 17 and the amendment to IFRS 4. No Board members indicated they intend to dissent from the issuance of the amendments to IFRS 17 and the amendment to IFRS 4. The Board expects to issue the amendments to IFRS 17 in the second quarter of 2020.
At its meeting on March 17, 2020, the IASB met to complete its discussions of the feedback on its Exposure Draft. The Board tentatively decided:
All of the Board members confirmed that they were satisfied that the Board has complied with the applicable due process requirements and has, in particular, undertaken sufficient consultation and analysis to begin the process for balloting the amendments to IFRS 17 and the amendment to IFRS 4. No Board members indicated they intend to dissent from the issuance of the amendments to IFRS 17 and the amendment to IFRS 4. The Board expects to issue the amendments to IFRS 17 in the second quarter of 2020.
Review the IASB Update and podcast on the Board's Web site.
At its meeting on March 19, 2020, the IASB met to discuss the treatment of ‘target profit’ in the accounting model it is developing for regulatory assets and regulatory liabilities. Target profit is the profit that an entity is entitled to include in the regulated rate. Principles that the Board had already discussed establish when the following elements of target profit are part of total allowed compensation: (a) regulatory interest—over the period in which the related regulatory asset or regulatory liability is outstanding; and (b) profit margins that vary with the amount of an expense, for example, a fixed percentage mark-up on the expense—when the related expense is recognized in accordance with IFRS Standards. At this meeting, the Board tentatively decided that: (i) regulatory returns on a construction work-in-progress base included in the regulated rates charged to customers during the construction period form part of total allowed compensation only during the period when the asset is in operation and is being used to supply goods or services; (ii) performance incentives (whether construction-related or non-construction-related) form part of total allowed compensation for goods or services supplied in the period over which the relevant performance criteria are monitored and evaluated; and (iii) all other elements of target profit that a regulatory agreement entitles an entity to charge customers in a period, including regulatory returns on a regulatory capital base, form part of total allowed compensation for goods or services supplied in that period. The Board expects to publish an exposure draft in the second half of 2020.
At its meeting on March 19, 2020, the IASB met to discuss the treatment of ‘target profit’ in the accounting model it is developing for regulatory assets and regulatory liabilities. Target profit is the profit that an entity is entitled to include in the regulated rate. Principles that the Board had already discussed establish when the following elements of target profit are part of total allowed compensation:
At this meeting, the Board tentatively decided that:
Review the IASB Update and podcast on the Board's Web site.
At its meeting on March 19, 2020, the IASB met and (i) discussed and made tentative conclusions regarding the objective of management commentary to be included in the revised IFRS Practice Statement; and (ii) discussed disclosure objectives for some types of content in management commentary. The Board also considered plans for the order of topics in future meetings and for developing guidance on those topics. The Board’s next discussion is expected to cover business model, resources and relationships, strategy and opportunities.
At its meeting on March 19, 2020, the IASB met and (i) discussed and made tentative conclusions regarding the objective of management commentary to be included in the revised IFRS Practice Statement; and (ii) discussed disclosure objectives for some types of content in management commentary. The Board also considered plans for the order of topics in future meetings and for developing guidance on those topics. The Board’s next discussion is expected to cover business model, resources and relationships, strategy and opportunities.
Review the IASB Update and podcast on the Board's Web site.