Part I - IFRS

IASB to issue a new standard in 2024

Jul 27, 2023

On July 27, 2023, the IASB concluded its technical decision-making on its primary financial statements project and decided to issue it next year.

The new standard will result from the primary financial statements project and will supersede IAS 1 Presentation of Financial Statements.

The IASB expects to issue this new standard in the first half of 2024=; it will be effective for annual reporting periods beginning on or after January 1, 2027.

Re­ad the announcement on the IFRS Foundation website.

FASB approves new requirements for disclosure of big expenses by segment

Jul 26, 2023

On July 26, 2023, the Financial Accounting Standards Board (FASB) approved new requirements on disclosure of significant expenses provided to executives. It wants the requirements to focus on disclosure of significant expenses not only provided to executives, but also regularly reviewed by them. The requirements, for which the FASB issued a proposal in October, are set to go into effect for annual reporting periods beginning after December 15, 2023, though companies can adopt them early.

The information is limited to companies that already provide segment information to the chief operating decision maker, an accounting designation used by the FASB and its international counterpart, the International Accounting Standards Board. Businesses that don’t currently share this information with their chief executive, chief operating officer or their board’s executive committee won’t have to disclose it to investors. These businesses will have to state in their disclosure that their senior executives don’t receive this data. Companies with only one business segment will also have to report their significant expenses.

Review the news release on the WSJ website.

New OECD guidance provides needed detail regarding Pillar Two implementation

Jul 17, 2023

On July 17, 2023, the OECD/G20 Inclusive Framework on BEPS (“inclusive framework”) released a package of materials related to the 15% global minimum tax on multinational corporations and the subject to tax rule that together form Pillar Two of the ongoing project relating to the tax challenges of the digitalization of the economy.

The Pillar Two documents released were:

  • Tax Challenges Arising from the Digitalization of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), July 2023 (“July AG”).
  • Tax Challenges Arising from the Digitalization of the Economy – GloBE Information Return (Pillar Two); and
  • Tax Challenges Arising from the Digitalization of the Economy – Subject to Tax Rule (Pillar Two).

Re­view the July AG on the OECD website.

Update on international tax reform provided to G20 finance ministers (July 2023)

Jul 17, 2023

On July 17, 2023, the OECD Secretary-General released a tax report presented to the G20 finance ministers and central bank governors that covers developments in international tax reform since February 2023.

The report provides an update on the work of the OECD/G20 Inclusive Framework on BEPS on a “two-pillar” approach to address the tax challenges arising from the digitalization and globalization of the economy, including the publication of an outcome statement dated July 11, 2023 on nexus and profit allocation challenges (Pillar One) and global minimum tax rules (Pillar Two) that was agreed by 138 of the 143 members of the inclusive framework.

Re­view tax report on the OECD website.

IFRS Foundation to assume TCFD monitoring duties as ISSB Standards pave the way for global sustainability reporting

Jul 10, 2023

On July 10, 2023, the IFRS Foundation welcomed the completion of the Task Force on Climate-related Financial Disclosures’ (TCFD) work and the transfer of monitoring responsibilities to the ISSB starting in 2024.

The Financial Stability Board (FSB), which oversees the TCFD, acknowledged that the ISSB standards mark the culmination of the TCFD’s work since its establishment in 2017. The FSB has now requested the IFRS Foundation to take over monitoring companies’ progress in disclosing climate-related information, a responsibility previously held by the TCFD.

The Financial Stability Board (FSB), which oversees the TCFD, acknowledged that the ISSB standards mark the culmination of the TCFD’s work since its establishment in 2017. The FSB has now requested the IFRS Foundation to take over monitoring companies’ progress in disclosing climate-related information, a responsibility previously held by the TCFD.

Access the news release on the IFRS Foundation website.

Educational material on applying IFRSs to climate-related matters updated

Jul 04, 2023

On July 4, 2023, the IFRS Foundation has released an updated version of its publication that shows how existing IFRS requirements require companies to consider climate-related matters when their effect is material to the financial statements.

The publication mainly consists of a non-exhaustive list of examples illustrating when IFRS Standards may require companies to consider the effects of climate-related matters in applying the principles in a number of standards.

The examples in the list refer to the following standards:

  • IAS 1 Presentation of Financial Statements
  • IAS 2 Inventories
  • IAS 12 Income Taxes
  • IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets
  • IAS 36 Impairment of Assets
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 21 Levies
  • IFRS 7 Financial Instruments: Disclosures
  • IFRS 9 Financial Instruments
  • IFRS 13 Fair Value Measurement
  • IFRS 17 Insurance Contracts

Access the material on the IASB website.

IASB issues podcast on latest Board developments (June 2023)

Jul 04, 2023

On July 4, 2023, the IASB has released a podcast featuring IASB Vice-Chair Linda Mezon-Hutter and Executive Technical Director Nili Shah discussing deliberations at the June 2023 IASB meeting.

Highlights of the podcast include discussions on:

  • discussions on the primary financial statements project;
  • decisions made in the equity method project;
  • developments on the project on subsidiaries without public accountability;
  • progress in the rate-regulated activities project; and
  • key takeaways from the discussion on the second comprehensive review of the IFRS for SMEs Accounting Standard.

Access the podcast on the IFRS Foundation website.

IASB publishes request for information on the post-implementation review of IFRS 15

Jun 29, 2023

On June 29, 2023, the International Accounting Standards Board (IASB) has issued a request for information (RFI) seeking comments from stakeholders to identify whether the requirements in IFRS 15 Revenue from Contracts with Customers provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

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.

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

Jun 27, 2023

Following the IASB's June 2023 meeting, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meeting and other developments since the work plan was last revised in May 2023. The ISSB did not hold a technical meeting this month, but launched its first two standards, IFRS S1 and IFRS S2.

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

Standard-setting projects

Maintenance projects

Research projects

Other projects

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.

IASB Chair discusses the role of financial reporting in uncertain times

Jun 26, 2023

On June 26, 2023, at the IFRS Foundation Conference, Andreas Barckow, Chair of the International Accounting Standards Board (IASB) explained how the IASB is working help to stakeholders address the uncertainties they are experiencing.

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.

Correction list for hyphenation

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