While it monitors the status of highly inflationary countries for the purposes of applying US GAAP, its criteria for identifying such countries are similar to those for identifying “hyperinflationary economies” under IAS 29.

Re­view the discussion document on the CAQ Website.

Mr Barckow noted that the IFRS Foundation is fully aware of the current backdrop to companies’ operations and the uncertainties that seem to increase everywhere. And he stated that when conditions change, the need for information you can rely on increases. Useful and trustworthy information enables informed decisions. He gave examples how the IASB is trying to serve the public interest by helping companies and investors by provide or receive better information for better decisions.

Re­view the speech on the IFRS website.

IFRS 15 specifies how and when an IFRS reporter will recognize revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The standard provides a single, principles based five-step model to be applied to all contracts with customers.

In the post-implementation review of the standard the IASB wants to assess:

• whether there are fundamental questions (fatal flaws) about the clarity and suitability of the core objectives or principles in the new requirements;
• whether the benefits to users of financial statements of the information arising from applying the new requirements are significantly lower than expected; and
• whether the costs of applying the new requirements and auditing and enforcing their application are significantly greater than expected.

Comments on the RFI are requested by October 27, 2023.

Review the press release and the Request for Information on the IFRS Foundation website.

• New item: IFRS 9 Financial Instruments—Application of the “Own Use” Exemption
• New item: IAS 27 Separate Financial Statements—Merger between a Parent and Its Subsidiary in the Separate Financial Statements
• Follow-up discussion on previous matter: IAS 21 The Effects of Changes in Foreign Exchange Rates and IAS 29 Financial Reporting in Hyperinflationary Economies—Consolidation of a Non-hyperinflationary Subsidiary by a Hyperinflationary Parent
• Input on IASB project: Climate-related Risks in the Financial Statements
• Input on IASB project: Business Combinations under Common Control (BCUCCs)

Re­view the meeting highlights on the IFRS website.

IOSCO has been watching goodwill accounting closely in the past. In February 2021, IOSCO called on IASB and FASB to collaborate on goodwill accounting and in November 2022 IOSCO released a statement emphasising issuers’ need for fair, transparent and timely disclosure about impacts of economic uncertainty. In that statement, IOSCO noted that, as economic circumstances evolve and change, it is critical for management to carefully assess the latest economic environment where issuers operate and reflect it in the assumptions used in the accounting estimates, including goodwill impairment tests.

The consultation is open for comments until September 20, 2023. The feedback received will be used to formulate a set of recommendations for regulators, auditors, issuers and those charged with governance. They will also underpin IOSCO’s engagement with standard setters, including the IASB, on improvements to accounting, reporting and disclosure requirements related to goodwill.

Review the consultation and press release on the IOSCO website.

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

Standard-setting projects

• Amendments to climate-related SASB standards — A newly added project regarding consequential amendments to the climate-related SASB standards to align them with IFRS S2; the consequential amendments are expected to be published together with IFRS S2 in June 2023.
• Business Combinations — Disclosures, Goodwill and Impairment — An exposure draft is expected in H1 2024 (previously no date given).
• Dynamic Risk Management — An exposure draft is expected in 2025 (previously no date given).
• Equity Method — An exposure draft is expected in 2024 (previously no date given).
• Financial Instruments with Characteristics of Equity — An exposure draft is expected in H2 2023 (previously no date given).
• International applicability of the SASB standards — Feedback on the exposure draft published in May 2023 is expected to be discussed in Q3 2023.
• Management Commentary — A decision on the direction of the project is expected in H2 2023 (previously no date given).
• Primary Financial Statements — The IFRS Accounting Standard is now expected in 2024 (previously no date given).
• Rate-regulated Activities — The IFRS Accounting Standard is now expected in 2025 (previously no date given).

Maintenance projects

• Annual Improvements to IFRS Accounting Standards — These projects have been added to the work plan with an exposure draft expected in Q3 2023:
• Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Illustrative Guidance accompanying IFRS 7)
• Lessee Derecognition of Lease Liabilities (Amendments to IFRS 9)
• Climate-related Risks in the Financial Statements — Review of the research is now expected in Q3 2023 (previously H2 2023).
• International Tax Reform — Pillar Two Model Rules — Project removed from work plan with the issuance of the IFRS Accounting Standard.
• Lack of Exchangeability (Amendments to IAS 21) — An IFRS Accounting Standard amendment is now expected in Q3 2023 (previously July 2023).
• Provisions — Targeted Improvements — A decision on the direction of the project is expected in H2 2023 (previously no date given).
• Supplier Finance Arrangements — Project removed from work plan with the issuance of the IFRS Accounting Standard amendment.

Research projects

• Business Combinations under Common Control — The decision on the direction of this project is expected in Q3 2023 (previously no date given).
• Extractive Activities — The decision on the direction on this project is expected in Q3 2023 (previously July 2023).
• Post-implementation Review of IFRS 9: Impairment — Feedback on the request for information published in May 2023 is expected to be discussed in H2 2023.

Strategy and Governance projects

• ISSB Consultation on Agenda Priorities — Feedback on the request for information published in May 2023 is expected to be discussed in H2 2023.

Other projects

• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — A proposed IFRS Taxonomy update is now expected in Q3 2023 (previously H2 2023).
• IFRS Accounting Taxonomy Update — Primary Financial Statements — This project has been added to the work plan with a proposed IFRS Taxonomy update expected in 2024.
• IFRS Sustainability Disclosure Taxonomy — A proposed IFRS Sustainability Disclosure Taxonomy is now expected in Q3 2023 (previously H2 2023).

The above is a faithful comparison of the IASB and ISSB work plan on May 2, 2023, and June 1, 2023.

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

Below is an analysis of all changes made to the work plan since our last analysis on June 1, 2023.

Standard-setting projects

• Climate-related disclosures — This project has been removed from the work plan since the ISSB issued IFRS S2 Climate-related Disclosures on June 26, 2023.
• Financial instruments with characteristics of equity — An exposure draft is now expected in Q4 2023 (previously H2 2023).
• General requirements — This project has been removed from the work plan since the ISSB issued IFRS S1 General Requirements for Disclosure of Sustainability-Related Financial Information on June 26, 2023.

Maintenance projects

• Lack of Exchangeability (Amendments to IAS 21) — An IFRS Accounting Standard amendment is now expected in August 2023 (previously Q3 2023).

Research projects

• Post-implementation Review of IFRS 9: Impairment — Feedback on the request for information published in May 2023 is now expected to be discussed in Q4 2023 (previously H2 2023).

Other projects

• IFRS Accounting Taxonomy Update — Common Practice (Financial Instruments) and General Improvements — This project has been added to the work plan with a proposed IFRS Taxonomy update expected in Q4 2023.

The above is a faithful comparison of the IASB and ISSB work plan on June 1, 2023 and June 27, 2023.

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