At its meeting on October 27-29, 2020, the IASB tentatively decided to extend the comment period for its upcoming discussion paper on business combinations under common control from 180 days to 270 days.

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

At its meeting on October 27-29, 2020, the IASB met to discuss its approach to seeking feedback in the Request for Information on:

1. the strategic direction and balance of the Board’s activities;
2. the criteria for assessing the priority of financial reporting issues that may be added to the work plan; and
3. the financial reporting issues that should be given priority.

With respect to (ii), the Board tentatively decided that the Request for Information should:

1. not ask stakeholders to re-prioritize the Board’s current work plan projects; and
2. include the following research pipeline and other projects for stakeholders to comment on and, if necessary, re-prioritize: High Inflation—Scope of IAS 29; Pollutant Pricing Mechanisms; Variable and Contingent Consideration; and Post-implementation Review of IFRS 5.

At a future meeting, the Board will discuss the due process steps taken in developing the Request for Information.

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

At its meeting on October 27-29, 2020, the IASB met and discussed feedback on its Exposure Draft.  With respect to the proposed approach, the Board tentatively decided to:

1. confirm its proposal to narrow the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 Income Taxes so that it would not apply to transactions that give rise to equal amounts of taxable and deductible temporary differences;
2. remove the capping proposal—in other words, include no requirement to limit the recognition of a deferred tax liability to the amount recognized for a deferred tax asset;
3. provide no application guidance or examples illustrating how an entity determines whether tax deductions relate to the lease asset or lease liability; and
4. provide an illustrative example explaining the deferred tax accounting for advance lease payments and initial direct costs.

With respect to other matters, the Board tentatively decided to:

1. require entities to apply the amendments to transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences.
2. require entities already applying IFRS Standards to apply the amendments for the first time by: (a) recognizing deferred tax for all temporary differences related to leases and decommissioning obligations at the beginning of the earliest comparative period presented, with the cumulative effect recognized as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date; and (b) applying the amendments prospectively to transactions other than leases and decommissioning obligations (in other words, only to such transactions that occur on or after the beginning of the earliest comparative period presented); and
3. require first-time adopters to recognize deferred tax for all temporary differences related to leases and decommissioning obligations at the date of transition to IFRS Standards. The Board would provide no other requirements for first-time adopters.

The Board will discuss the proposed amendment’s effective date, as well as the Board’s compliance with applicable due process steps, at a future meeting.

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

At its meeting on October 27-29, 2020, the IASB received an update on its stakeholder consultation on the core elements of the DRM accounting model, which started in October 2020. The Board was not asked to make any decisions. The Board will consider the feedback from its consultation on the core elements of the DRM accounting model during the first half of 2021.

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

At its meeting on October 27-29, 2020, the IASB met to discuss findings from its research on accounting policies developed by entities applying IFRS 6, Exploration for and Evaluation of Mineral Resources. The research will help the Board decide at a future meeting whether to replace or amend IFRS 6. The Board was not asked to make any decisions. The Board will hold educational sessions to develop its understanding of extractive activities further.

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

At its meeting on October 27-29, 2020, the IASB met to discuss: (a) an overview of the Board’s proposals intended to promote provision of information in management commentary on matters that could affect an entity’s long-term prospects, on intangible resources and relationships, and on environmental, social and governance (ESG) matters; (b) an initial assessment of the likely effects of implementing the Board’s proposals for revising IFRS Practice Statement 1, Management Commentary (Practice Statement); and (c) due process steps and permission to begin the balloting process for the exposure draft of the revised Practice Statement. The staff will prepare the Exposure Draft for balloting. The Board expects to publish the Exposure Draft in April 2021. At a future meeting, the Board plans to discuss a comment letter period for the Exposure Draft.

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