Below is an analysis of all changes made to the work plan since our last analysis on December 18, 2023

Standard-setting projects

• Business combinations — Disclosures, goodwill and impairment— An exposure draft is now expected in March 2024 (previously Q1 2024)
• Disclosure initiative — Subsidiaries without public accountability: Disclosures — A final standard is now expected in April 2024 (previously Q2 2024)
• Dynamic risk management— An exposure draft is now expected in H1 2025 (previously 2025)
• Financial instruments with characteristics of equity— The exposure draft feedback will now be discussed in Q2 2024 (previously Q1 2024)
• Primary financial statements— A final standard is now expected in April 2024 (previously Q2 2024)

Maintenance projects

• test
  • test 2
• Annual Improvements to IFRS Accounting Standards — Feedback discussions on the exposure draft of the following projects will now begin in February 2024 (previously Q1 2024):
  • Cost Method (Amendments to IAS 7)
  • Derecognition of Lease Liabilities (Amendments to IFRS 9)
  • Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
  • Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Guidance on implementing IFRS 7)
  • Gain or Loss on Derecognition (Amendments to IFRS 7)
  • Hedge Accounting by a First-time Adopter (Amendments to IFRS 1)
  • Introduction and Credit Risk Disclosures (Amendments to Guidance on implementing IFRS 7)
  • Transaction Price (Amendments to IFRS 9)
• International applicability of the SASB standards— This project has been removed from the work plan since final amendments were published on December 19, 2023
• Updating the 'Subsidiaries without public accountability: Disclosures' standard — An exposure draft is now expected in Q2 2024 (previously H1 2024)

Research projects

• Post-implementation Review of IFRS 15 'Revenue from Contracts with Customers' — The IASB has concluded the discussion of the feedback receivedand will now publish a feedback statement as next step (expected in H2 2024)

Other projects

• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — After discussing the feedback received on the proposed update, a final update will now be published in March 2024
• IFRS Accounting Taxonomy Update — Common practice (Financial instruments) and general improvements — After discussing the feedback received on the proposed update, a final update will now be published in March 2024

The above is a faithful comparison of the IASB and ISSB work plan on December 18, 2023 and January 29, 2024.

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

While IPTF 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.

The IPTF's discussion document for the November 9, 2023 meeting, states the following view of the Task Force:

Countries with three-year cumulative inflation rates exceeding 100%:

• Argentina
• Ethiopia
• Ghana
• Iran
• Lebanon
• Sierra Leone
• Sudan
• Suriname
• Turkey
• Venezuela
• Yemen
• Zimbabwe

Countries with projected three-year cumulative inflation rates exceeding 100%:

• Haiti

Countries where the three-year cumulative inflation rates had exceeded 100% in recent years:

• South Sudan

Countries with recent three-year cumulative inflation rates exceeding 100% after a spike in inflation in a discrete period:

There are no countries in this category for this period.

Countries with projected three-year cumulative inflation rates between 70% and 100% or with a significant (25% or more) increase in inflation during the current period:

• Angola
• Burundi
• Egypt
• Lao P.D.R
• Malawi
• Moldova
• Nigeria (new entry)
• Pakistan
• Sao Tome and Principe
• Sri Lanka
• Ukraine

The IPTF also notes that there may be additional countries with three-year cumulative inflation rates exceeding 100% or that should be monitored which are not included in the analysis as the necessary data is not available. Examples cited are Eritrea, Syria, and Afghanistan.

Access the full list on the CAQ website.

Stakeholders provided input to the FASB that it is unclear how to apply the existing induced conversion guidance to convertible debt instruments with cash conversion and other features that have become prevalent in the market since this guidance was originally issued.

The proposed ASU would address this feedback by clarifying the requirements for determining whether certain settlements of convertible debt instruments, including convertible debt instruments with cash conversion features, should be accounted for as induced conversions.

Public comments will be accepted through March 18, 2024.

Access the news release on the FASB website.

In addition, the Trustees have launched a call for new Committee members.

Review the press release on the IFRS Foundation website.

The podcast highlights projects which were discussed during the meeting:

• IASB work plan.
• Management commentary.
• Power purchase agreements
• Preview of key developments from the IASB during the first half of 2024

Access the podcast on the IFRS Foundation website

The podcast looks back at the ISSB’s progress in 2023, IOSCO’s endorsement of the ISSB standards, and foundational work to support the implementation of IFRS S1 and IFRS S2 including capacity building, interoperability and connections.

It also reflects on highlights from December 2023, including:

• The ISSB’s engagements at COP28;
• The launch of the IFRS sustainability knowledge hub; and
• Nature and social aspects of climate-related risks and opportunities.

Access the podcast on the IFRS Foundation website.

Below is an analysis of all changes made to the work plan since our last analysis on November 20, 2023

Standard-setting projects

• Financial Instruments with Characteristics of Equity — This project is now in the exposure draft feedback stage which is expected to be completed in Q1 2024.

Maintenance projects

• Amendments to the Classification and Measurement of Financial Instruments — Final amendments are now expected in Q2 2024 (previously H1 2024)
• Annual Improvements to IFRS Accounting Standards — The following projects will have feedback discussions on their exposure draft in Q1 2024 (previously January 2024):
  • Cost Method (Amendments to IAS 7)
  • Derecognition of Lease Liabilities (Amendments to IFRS 9)
  • Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
  • Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Guidance on implementing IFRS 7)
  • Gain or Loss on Derecognition (Amendments to IFRS 7)
  • Hedge Accounting by a First-time Adopter (Amendments to IFRS 1)
  • Introduction and Credit Risk Disclosures (Amendments to Guidance on implementing IFRS 7)
  • Transaction Price (Amendments to IFRS 9)
• Climate-related and Other Uncertainties in the Financial Statements — A direction on the project is now expected in Q2 2024 (previously Q1 2024)
• Power Purchase Agreements — An exposure draft is expected in Q2 2024
• Provisions — Targeted Improvements — An exposure draft is expected in H2 2024.

Research projects

• Extractive Activities — This project is no longer in the work plan.

Other projects

• IFRS Accounting Taxonomy Update — Common Practice (Financial Instruments) and General Improvements — Feedback discussions on the proposed IFRS Taxonomy Update are expected in February 2024 (previously Q1 2024)
• IFRS Accounting Taxonomy Update — Primary Financial Statements — A proposed IFRS Taxonomy update is now expected in Q2 2024 (previously H1 2024)
• IFRS Accounting Taxonomy Update — Subsidiaries without Public Accountability: Disclosures and Amendments to IFRS 7 and IFRS 9 — This project is added to the work plan with a proposed IFRS Taxonomy update expected in H2 2024
• IFRS Sustainability Disclosure Taxonomy — The issuance of an IFRS Sustainability Disclosure Taxonomy is expected in Q2 2024

The above is a faithful comparison of the IASB and ISSB work plan on November 20, 2023 and December 18, 2023.

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

The IASB had issued IFRS 6 Exploration for and Evaluation of Mineral Resources in December 2004 because of a project taken over from the IASC.

Based on evidence collected, the IASB concluded at its September 2023 meeting that there is no compelling evidence that standard-setting would be necessary.

The IASB acknowledged that diverse accounting policies for exploration and evaluation expenditure would continue to be used in practice. However, feedback from investors and other users of financial statements suggested that those diverse accounting policies were not a significant concern.

Overall, the research findings suggested that any improvements to financial reporting that might result from amending or replacing the requirements in IFRS 6 or other IFRS Accounting Standards are likely to be outweighed by the costs of developing and implementing any such changes.

Review the press release and the project summary on the IFRS Foundation website.

• New item: IAS 37 Provisions, Contingent Liabilities and Contingent Assets — Climate-related Commitment
• New item: IFRS 8 Operating Segments — Disclosure of Revenues and Expenses for Reportable Segments
• Finalization of agenda decision: IAS 27 Separate Financial Statements — Merger between a Parent and Its Subsidiary in the Separate Financial Statements
• Input to IASB project: Climate-related and Other Uncertainties in the Financial Statements
• Input to IASB project: Provisions —Targeted Improvements
• Input to IASB project: Power Purchase Agreements

Review the meeting highlights on the IFRS website.

IAS 32 Financial Instruments: Presentation sets out how a company that issues financial instruments should distinguish debt instruments from equity instruments. The distinction is important because the classification of the instruments affects the depiction of a company’s financial position and performance.

IAS 32 works well for most financial instruments. However, the instruments have evolved since this IFRS Accounting Standard was initially issued—they are more complex and present new reporting challenges for companies. Companies’ solutions to the reporting challenges differ, resulting in diverse accounting practices that make it difficult for investors to assess and compare companies’ financial position and performance. Investors are calling for better information, particularly about equity instruments.

To address these challenges, the proposals in the Exposure Draft would amend IAS 32, IFRS 7 Financial Instruments: Disclosures, and IAS 1 Presentation of Financial Statements.

The IASB proposes:

• to clarify the underlying classification principles of IAS 32 to help companies distinguish between debt and equity;
• to require companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and
• to issue new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separate to the amounts attributable to other holders of equity instruments.

Comments on the proposed changes are requested by March 29, 2024.

Access the press release and the exposure draft on the IFRS Foundation website.