March 2023

2023 IFRS Accounting Taxonomy issued

Mar 23, 2023

On March 23, 2023, the IFRS Foun­da­tion is­sued its 2023 IFRS Ac­count­ing Tax­on­omy. The IFRS Tax­on­omy en­ables elec­tronic re­port­ing of fi­nan­cial in­for­ma­tion pre­pared in ac­cor­dance with IFRS Ac­count­ing Stan­dards.

The 2023 IFRS Accounting Taxonomy is consistent with IFRSs as issued by the IASB at January 1, 2023, including those issued but not yet effective. The 2023 IFRS Taxonomy also incorporates the two changes made to the IFRS Taxonomy in 2022 reflecting amended IFRSs and common reporting practice by companies that apply IFRS Accounting Standards as well as general taxonomy improvements.

For more information, see the press release and the 2023 IFRS Accounting Taxonomy page  on the IFRS Foundation website.

IASB launches new project to explore climate-related risk reporting in financial statements

Mar 23, 2023

On March 23, 2023, the IASB has launched a new project aimed at exploring ways for entities to provide better information about climate-related risks in their financial statements. The project was initiated in response to feedback from the IASB’s recent Agenda Consultation.

During the IASB’s meeting this week, the project was discussed for the first time. Outcome of deliberations during the meeting were that the IASB will consider the work of the ISSB to ensure that any proposals complement the IFRS Sustainability Disclosure Standards (expected by the end of the second quarter of 2023). In addition, the IASB will (1) conduct research to determine how much the educational materials published in 2020 are helping entities reflect the effects of climate-related risks in their financial statements and (2) consider what further actions can be taken to improve information about these risks.

In a statement regarding the project, IASB Chair Andreas Barckow said: “Feedback from our Agenda Consultation indicates a desire for us to go further. Therefore, we are initiating this project, informed by the ongoing work of our colleagues on the ISSB.”

The project is part of a wider effort by IASB and ISSB to work together to ensure connectivity in both their products and processes. Sustainability-related financial disclosures and financial statements complement each other, with the former providing early indications of matters that will subsequently be reflected in financial statements. Achieving connectivity in reports requires consistency in language, compatibility of concepts, and no gaps or unintended overlaps between IASB and ISSB Standards and digital taxonomies. This journey is still in its early stages, and feedback from stakeholders will be taken into account in the ISSB’s forthcoming consultation on agenda priorities.

For more information, see the following:

IASB proposes amendments regarding the classification and measurement of financial instruments

Mar 21, 2023

On March 21, 2023, the International Accounting Standards Board (IASB) has published an exposure draft 'Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7)' to address matters identified during the post-implementation review of the classification and measurement requirements of IFRS 9 'Financial Instruments'. Comments are requested by July 19, 2023.

 

Background

In 2022, the IASB concluded its post-implementation review of the classification and measurement requirements of IFRS 9 Financial Instruments. In general, the IASB found that preparers can apply the requirements consistently. However, the IASB identified some requirements that would benefit from clarification to improve their understandability.

The IASB believed that two of the matters should be addressed quickly and other matters, although of a lower priority, would also benefit from being addressed. The IASB came to the conclusion that it would be most efficient for stakeholders if the IASB proposed all amendments in a single exposure draft.

 

Suggested changes

The proposed amendments in exposure draft IASB/ED/2023/2 Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) are:

  • Derecognition of a financial liability settled through electronic transfer: The IASB proposes amendments to the application guidance of IFRS 9 to permit an entity to derecognise a financial liability that is settled using an electronic payment system even if cash has not yet been delivered by the entity if specified criteria are met. An entity that elects to apply the proposed derecognition option would be required to apply it to all settlements made through the same electronic payment system.
  • Classification of financial assets:
    • Contractual terms that are consistent with a basic lending arrangement. The IASB proposes amendments to the application guidance of IFRS 9 to provide guidance on how an entity can assess whether contractual cash flows of a financial asset are consistent with a basic lending arrangement. To illustrate the changes to the application guidance, the IASB proposes adding examples of financial assets that have, or do not have, contractual cash flows that are solely payments of principal and interest on the principal amount outstanding.
    • Assets with non-recourse features. The IASB proposes amendments to enhance the description of the term ‘non-recourse’. Under the amendments, a financial asset has non-recourse features if an entity’s contractual right to receive cash flows is limited to the cash flows generated by specified assets both over the life of the financial asset and in the case of default. 
    • Contractually linked instruments. The IASB proposes to clarify the description of transactions containing multiple contractually linked instruments that are in the scope of IFRS 9. The proposed amendments would also introduce an example of when transactions with multiple debt instruments do not meet the criteria of transactions with multiple contractually linked instruments. In addition, the proposed amendments clarify that the reference to instruments in the underlying pool can include financial instruments that are not within the scope of the classification requirements.
  • Disclosures:
    • Investments in equity instruments designated at fair value through other comprehensive income. The IASB proposes amendments to IFRS 7 to require disclosure of an aggregate fair value of these equity instruments rather than the fair value of each instrument at the end of the reporting period and the changes in fair value presented in other comprehensive income during the period.
    • Contractual terms that could change the timing or amount of contractual cash flows. The IASB proposes to require the disclosure of contractual terms that could change the timing or amount of contractual cash flows. The requirements would apply to each class of financial asset measured at amortised cost or fair value through other comprehensive income and each class of financial liability measured at amortised cost.

Comments on the proposed changes are requested by July 19, 2023.

 

Effective date and transition

The IASB will decide on the effective date for the proposed amendments after exposure. The IASB proposes to require an entity to apply the amendments retrospectively, but not to restate comparative information.

 

Additional information

Please click for:

 

IASB’s targeted standards-level review of disclosures project yields improved approach to developing IFRS Accounting Standards disclosures

Mar 08, 2023

On March 8, 2023, the International Accounting Standards Board (the Board) concluded its project which aimed at improving its approach to developing disclosure requirements in IFRS Accounting Standards, with a focus on helping companies provide more useful information to investors.

The IASB has published guidance summarising the improved approach, which involves:

  • Early engagement with investors.
  • Developing disclosure requirements alongside recognition and measurement requirements.
  • Considering digital reporting implications.
  • Using objectives to explain investors’ information needs.
  • Supporting specific objectives through disclosure requirements.

The IASB intends to use this approach when developing disclosure requirements in future.

In addition, the IASB has published a project summary and feedback statement on the project, which provides an overview of the project, summarises feedback on the exposure draft ED/2021/3 Disclosure Requirements in IFRS Standards — A Pilot Approach (Proposed amendments to IFRS 13 and IAS 19), and sets out the IASB’s response to that feedback. The publication of this document officially concludes the the IASB's targeted standards-level review of disclosures project.

Review the press release on the IASB’s website.

IFRS Sustainability Symposium’s key takeaways

Mar 06, 2023

On February 17, 2023, the International Sustainability Standards Board (ISSB) hosted a Sustainability Symposium in Montreal where more than 1,000 people from 45 countries gathered to discuss what’s next for investor-focused sustainability disclosure. Seven key takeaways from the symposium stood out.

The key takeaways include:

  1. The ISSB Standards are nearing issuance (expected by Q2 2023).
  2. SASB Standards are a practical tool to implement S1 and S2 and will be supported for at least four years.
  3. Global comparability remains paramount.
  4. Jurisdictions are actively considering the ISSB Standards.
  5. Capacity building is critical to the ISSB’s success. The ISSB has pledged to publish guidance recognizing that companies have different levels of preparedness and capability to apply S1 and S2.
  6. Work to advance integrated reporting remains underway.
  7. There is growing support for sustainability disclosures in the private sector.

Review the press release on the IFRS Foundation’s website.

ISSB issues podcast on latest Board developments (March 2023)

Mar 20, 2023

On March 20, 2023, the IFRS Foundation has released a podcast discussing highlights from the March 2023 ISSB meeting. The podcast is hosted by ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd.

Highlights of the podcast include discussions on:

  • discussions from the March ISSB meeting;
  • activities following final decisions on S1 and S2;
  • statements from IOSCO;
  • recent meetings in Tokyo;
  • the board’s discussions on the SASB Standards;
  • update on agenda priorities; and
  • next phases of work.

The podcast can be accessed on the IFRS Foundation website.

SEC Accepts 2023 U.S. GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy

Mar 21, 2023

On March 21, 2023, the Se­cu­ri­ties and Ex­change Com­mis­sion (SEC) an­nounced that it has ac­cepted the 2023 GAAP Fi­nan­cial Re­port­ing Tax­on­omy (GRT) and the 2023 SEC Re­port­ing Tax­on­omy (SRT) (col­lec­tively re­ferred to as the “GAAP Tax­on­omy”). The FASB also fi­nal­ized the 2023 DQC Rules Tax­on­omy (DQCRT) which to­gether with the GAAP Tax­on­omy are col­lec­tively re­ferred to as the “FASB Tax­onomies.”

The 2023 taxonomies reflect accounting standards updated during 2022 and other improvements related to business development companies “that submit financial statement information using Inline eXtensible Business Reporting Language.”

Re­view the press re­lease on the SEC's web­site.

Updated IASB and ISSB work plan — Analysis (March 2023)

Mar 27, 2023

Following the IASB's and ISSB's March 2023 meetings, we have analyzed the work plan on the IFRS Foun­da­tion website to see what changes have resulted from the meetings and other de­vel­op­ments since the work plan was last revised in February 2023. Two new projects, one for the IASB and one for the ISSB, have been added to the work plan.

Below is an analysis of all changes made to the work plan since our last analysis on March 2, 2023.

Stan­dard-set­ting projects

Main­te­nance projects

Other projects

The above is a faithful com­par­i­son of the IASB and ISSB work plan at March 2, 2023 and  March 27, 2023.

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

Updated IASB and ISSB work plan — Analysis (February 2023)

Mar 02, 2023

On March 2, 2023, the International Accounting Standards Board (the Board) and the International Sustainability Standards Board (ISSB) updated its work plan following its February 2023 meetings. The expected timing of the forthcoming ISSB standards has been officially confirmed.

Below is an analysis of all changes made to the work plan since our last analysis on January 30, 2023.

Stan­dard-set­ting projects

Main­te­nance projects

Research projects

Strategy & gov­er­nance projects

Other projects

The revised IASB and ISSB work plan is available on the Board's website.

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