At its meeting on February 20-23, 2023, the IASB continued its discussions on the development of the Dynamic Risk Management (DRM) model. The IASB discussed: (i) whether financial assets measured at fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL) are eligible for inclusion in the determination of an entity’s current net open risk position; and (ii) whether it is necessary to refine the requirements for the assessment of the performance of the DRM model, including how to reflect in financial statements the effects of any unexpected changes in the model. Following a discussion, the IASB made tentative decisions with respect to both (i) and (ii). The IASB will continue its discussions on the topics identified in the project plan at a future meeting.

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At its meeting on February 20-23, 2023, the IASB met to discuss: (i) sweep issues on classification and presentation topics in the project plan; and (ii) the potential development of specific presentation requirements for equity instruments that are within the scope of IAS 32 Financial Instruments: Presentation. Following a discussion, the IASB made tentative decisions with respect to both (i) and (ii). The IASB will discuss the remaining topics set out in the project plan at a future meeting.

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At its meeting on February 20-23, 2023, the IASB met to discuss its plan to redeliberate the proposed recognition requirements in its Exposure Draft. The IASB was not asked to make any decisions on the plan. The IASB also started to redeliberate specific topics included in the plan relating to: (i) the threshold for the recognition of regulatory assets and regulatory liabilities; (ii) the relationship between an assessment of enforceability and the recognition of regulatory assets and regulatory liabilities; and (iii) the accounting for performance incentives, except those that relate to an entity’s performance over several periods (long-term performance incentives). Following a discussion, the IASB made tentative decisions with respect to (i), (ii)  and (iii) The IASB will continue to redeliberate the project proposals at a future meeting.

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At its meeting on February 20-23, 2023, the IASB met to discuss its project on Business Combinations—Disclosures, Goodwill and Impairment. In particular, the IASB discussed a management approach to disclosing information about the subsequent performance of business combinations. Following a discussion, the IASB made a number of tentative decisions. At future meetings, the IASB will make tentative decisions on matters including: (a) clarifying other aspects of the disclosure requirements for business combinations; (b) reducing the cost and complexity of applying the impairment test of cash-generating units in IAS 36 Impairment of Assets; and (c) improving the effectiveness of the impairment test of cash-generating units containing goodwill. Once the IASB has made tentative decisions on all aspects of the project, it will consider whether the package of decisions meets the project objective and whether to publish an exposure draft setting out its proposals.

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At its meeting on February 20-23, 2023, the IASB met to discuss: (i) feedback from stakeholders on the first phase of the post-implementation review of the impairment requirements in IFRS 9 Financial Instruments and the credit risk disclosure requirements in IFRS 7 Financial Instruments: Disclosures; (ii) a review of academic literature relevant to this post-implementation review; and (iii) matters about which the IASB will ask questions in a request for information.  The IASB plans to approve the publication of the request for information and set a comment period. The IASB expects to publish the request for information by the end of May 2023.

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At its meeting on February 20-23, 2023, the IASB discussed its proposed amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures. The proposed amendments would add disclosure requirements about an entity’s supplier finance arrangements. The IASB tentatively decided to require an entity to apply the amendments for annual reporting periods beginning on or after January 1, 2024. The IASB tentatively decided: (i) to permit earlier application and, if an entity applies the amendments for an earlier period, to require the entity to disclose that fact; (ii) not to require an entity to disclose comparative information for preceding periods in the annual reporting period it first applies the amendments; (iii) not to require an entity to disclose, in its first annual financial statements after the amendments become effective, information as at the beginning of that annual reporting period on: (a) the carrying amount of financial liabilities recognized in the statement of financial position that are part of a supplier finance arrangement for which suppliers have already received payment from the finance providers; and (b) the range of payment due dates of both financial liabilities that are part of a supplier finance arrangement and comparable trade payables that are not part of such an arrangement; and (iv) not to require the disclosures required by the amendments for any interim financial reports within the annual period in which an entity first applies the amendments.

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At its meeting on February 20-23, 2023, the IASB discussed its proposed amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates, and tentatively decided: (i) to proceed with the proposed amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards; and (ii) not to make amendments to IFRS 13, Fair Value Measurement. The IASB tentatively decided to require an entity to apply the amendments for annual reporting periods beginning on or after January 1, 2025 and to permit earlier application. The IASB decided to finalize the amendments without re-exposure. No IASB member indicated an intention to dissent from issuing the amendments. All of the IASB members confirmed they were satisfied that the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the amendments. The IASB expects to issue the amendments in the third quarter of 2023.

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