Highlights of the podcast include discussions on:

• the project on climate-related risks in the financial statements that has been re-calibrated to also include "other uncertainties";
• the conclusion of technical discussions in the project on goodwill and impairment;
• the rate-regulated activities project;
• key takeaways from the equity method project;
• decisions made in the second comprehensive review of the IFRS for SMEs;
• the direction of the project looking at business combinations under common control; and
• decisions on the extractive activities project.

Access the podcast on IFRS Foundation website.

The research concludes with some observations and suggestions based on the findings:

• Regarding the large range of terminology in intangible asset reporting one solution could be the use of digital reporting such as Core & More reporting
• An expense disclosure approach would require mandating specified categories to ensure disclosure
• Capitalizing currently expensed intangible-related activities would reduce but not eliminate the information gap
• Aligning intangible asset fair value criteria to IFRS 13 might be a relatively low-cost solution to reduce the information gap
• Disclosure of unrecognized intangibles would also provide a better understanding of capitalized intangible assets

As a solution to the current unsatisfying reporting of intangibles two measures were suggested for intangibles with partial markets: Allowing the revaluation model as an accounting policy choice and allowing estimation of fair value under IFRS 13 along with appropriate disclosures of judgments and estimates. To achieve this, the IASB could amend IAS 38 to provide alternative criteria to “active market” such as “freely transferable” and “commonly traded”. The IASB could develop indicators to assist entities in determining whether the revaluation model policy choice was available. A longer-term project could be to consider measurement for “unique” intangibles referred to in IAS 38

Access the research on the SSRN website. 

Below is an analysis of all changes made to the work plan since our last analysis on July 28, 2023.

Standard-setting projects

• Financial instruments with characteristics of equity — An exposure draft is now expected in November 2023 (previously Q4 2023)
• Management commentary — A decision on the project’s direction is expected in H1 2024 (previously Q4 2023)
• Second comprehensive review of the IFRS for SMEs — A final standard is now expected in 2024 (previously 2025)

Maintenance projects

• Amendments to the classification and measurement of financial instruments — The next project step is now the publication of final amendments in H1 2024
• Amendments to the IFRS for SMEs — International tax reform — The next project step is now the publication of final amendments in September 2023
• Annual Improvements to IFRS Accounting Standards — After the publication of the exposure draft in September 2023, feedback will be discussed in Q1 2024; the following projects are included:
• Cost Method (Amendments to IAS 7)
• Credit Risk Disclosures (Amendments to Illustrative Examples accompanying IFRS 7)
• Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
• Disclosure of Deferred Difference Between Fair Value and Transaction Price (Amendments to Illustrative Guidance accompanying IFRS 7)
• Gain or Loss on Derecognition (Amendments to IFRS 7)
• Hedge Accounting by a First-time Adopter (Amendments to IFRS 1
• Lessee Derecognition of Lease Liabilities (Amendments to IFRS 9)
• Transaction Price (Amendments to IFRS 9)
• Climate-related and other uncertainties in the financial statements — The project has been renamed; the next project step is now a decision on the project direction expected in H1 2024
• Lack of exchangeability — The project has been removed from the work plan as final amendments were published in August 2023
• Power purchase agreements — A project newly added to the work plan; a decision on the project direction is expected in H1 2024

Research projects

• Business combinations under common control — A decision on the project’s direction is expected in November 2023 (previously September 2023)
• Extractive activities — The next project step is now the publication of a project summary expected in Q4 2023
• Post-implementation review of IFRS 15: Revenue from Contracts with Customers — The feedback received will now be discussed in Q1 2024 (previously H1 2024)
• Post-implementation review of IFRS 9 (Impairment) — The feedback received will now be discussed in November 2023 (previously Q4 2023)

Other projects

• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — The proposed IFRS Taxonomy update is expected in October 2023 (previously September 2023)
• IFRS Sustainability Disclosure Taxonomy - Accounting Taxonomy Update — Common practice (Financial instruments) and general improvements — The proposed IFRS Taxonomy update is expected in November 2023 (previously Q4 2023)

The above is a faithful comparison of the IASB and ISSB work plan on July 28, 2023 and September 26, 2023.

For access to the current work plan at any time, please click here

The IASB heard in recent years that climate-related risks are often perceived as remote, long-term risks and may not be appropriately considered in the financial statements and that users need better qualitative and quantitative information about the effect of climate-related risks on the carrying amounts of assets and liabilities reported in the financial statements.

In March 2023, the IASB added a project "Climate-related Risks in the Financial Statements" to its agenda with the first discussions of the project taking place this week. The IASB determined that possible actions resulting from the project would include development of educational materials, illustrative examples and targeted amendments to IFRS Accounting Standards to improve application of existing requirements. The staff will work closely with the ISSB staff to facilitate connections in the Boards’ work. The IASB will also continue to monitor developments to determine whether to take further action.

Finally, the IASB has also decided to rename the project to "Climate-related and Other Uncertainties in the Financial Statements" to stress that the principles-based IASB standards apply to any risk an entity incurs.

Review the news release on the IFRS Foundation website.

The Accounting Standard introduced a comprehensive and robust framework for the recognition, measurement and disclosure of revenue that applies to a wide range of transactions and industries. It sets out a single coherent approach to recognizing and measuring revenue that provides useful information to investors about the nature, amount, timing and uncertainty of revenue and cash flows arising from a company’s contracts with customers.

As part of the IASB’s usual post-implementation review (PIR) process for Accounting Standards, it will assess whether the requirements are working as intended. The deadline for comments is October 27, 2023.

Re­fer to the video on the IFRS website.

The five key takeaways from the conference are:

• Integrated thinking and reporting improve engagement and dialogue between investors and investees.
• Integrated thinking and reporting are integral to the IFRS Foundation’s development of a comprehensive global corporate reporting system.
• Integrated thinking and reporting improve performance.
• Integrated thinking and reporting can be a natural link between investor- and impact-focused sustainability reporting.
• Integrated thinking and reporting are complementary to the ISSB standards.

Review the summary on the Integrated Reporting website.

The amendments in Lack of Exchangeability (Amendments to IAS 21) amend IAS 21 to:

• Specify when a currency is exchangeable into another currency and when it is not — a currency is exchangeable when an entity is able to exchange that currency for the other currency through markets or exchange mechanisms that create enforceable rights and obligations without undue delay at the measurement date and for a specified purpose; a currency is not exchangeable into the other currency if an entity can only obtain an insignificant amount of the other currency.
• Specify how an entity determines the exchange rate to apply when a currency is not exchangeable — when a currency is not exchangeable at the measurement date, an entity estimates the spot exchange rate as the rate that would have applied to an orderly transaction between market participants at the measurement date and that would faithfully reflect the economic conditions prevailing.
• Require the disclosure of additional information when a currency is not exchangeable — when a currency is not exchangeable an entity discloses information that would enable users of its financial statements to evaluate how a currency’s lack of exchangeability affects, or is expected to affect, its financial performance, financial position and cash flows.

An entity applies the amendments for annual reporting periods beginning on or after January 1, 2025. Earlier application is permitted.

An entity does not apply the amendments retrospectively. Instead, an entity recognizes any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings when the entity reports foreign currency transactions. When an entity uses a presentation currency other than its functional currency, it recognizes the cumulative amount of translation differences in equity.

Access the press release and the webcast explaining the amendments on the IFRS website.

The corrections relate to the illustrative examples accompanying the revised version of IFRS 3 Business Combinations.

Editorial corrections do not change the meaning or application of pronouncements, but instead correct inadvertent errors.

Re­fer to the editorial corrections on the IFRS website.

Highlights of the podcast include discussions on:

• the conclusion of technical discussions in the primary financial statements and subsidiaries without public accountability projects;
• matters arising in the dynamic risk management project;
• discussions on improvements to requirements in the impairment test in the goodwill and impairment project;
• the equity method project;
• a recommendation from the IFRS Interpretations Committee; and
• research regarding the extractive activities research project.

Access the podcast on the IASB website.

Below is an analysis of all changes made to the work plan since our last analysis on June 27, 2023.

Standard-setting projects

• Amendments to climate-related SASB Standards — This project has been removed from the work plan since the final amendments were included when IFRS S2 was issued.
• Equity Method — An exposure draft is now expected in H2 2024 (previously 2024).
• International applicability of the SASB standards — Feedback on the exposure draft will now be discussed in September 2023 (previously Q3 2023).
• Management commentary — A decision on the project’s direction is expected in Q4 2023 (previously H2 2023).

Maintenance projects

• Amendments to the classification and measurement of financial instruments — Feedback on the exposure draft is now expected to be discussed in September 2023 (previously Q3 2023).
• Annual Improvements to IFRS Accounting Standards — Exposure draft for the following is now expected in September 2023 (previously Q3 2023):
• Cost Method (Amendments to IAS 7)
• Credit Risk Disclosures (Amendments to Illustrative Examples accompanying IFRS 7)
• Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
• Disclosure of Deferred Difference Between Fair Value and Transaction Price (Amendments to Illustrative Guidance accompanying IFRS 7)
• Gain or Loss on Derecognition (Amendments to IFRS 7)
• Hedge Accounting by a First-time Adopter (Amendments to IFRS 1
• Lessee Derecognition of Lease Liabilities (Amendments to IFRS 9)
• Transaction Price (Amendments to IFRS 9)
• Climate-related risks in the financial statements — the research review is expected in September 2023 (previously Q3 2023).
• Provisions — Targeted Improvements — A decision on the project’s direction is expected in Q4 2023 (previously H2 2023).

Research projects

• Business combinations under common control — A decision on the project’s direction is expected in September 2023 (previously Q3 2023).
• Extractive activities — A decision on the project’s direction is expected in September 2023 (previously Q3 2023).
• Post-implementation review of IFRS 15: Revenue from Contracts with Customers — After publishing the request for information on June 29, 2023, the next expected project step will now be the discussion of the feedback received (expected in H1 2024).

Strategy and Governance

• ISSB consultation on agenda priorities — Feedback on the request for information is expected in Q4 2023 (previously H2 2023).

Other projects

• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — The proposed IFRS Taxonomy update is expected in September 2023 (previously Q3 2023).
• IFRS Sustainability Disclosure Taxonomy — After publishing the proposed taxonomy on 27 July 2023, the next expected project step will now be the discussion of the feedback received (expected in Q4 2023).

The above is a faithful comparison of the IASB and ISSB work plan on June 27, 2023 and July 28, 2023.

For access to the current work plan at any time, please click here.