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

Standard-setting projects

• Management Commentary — A decision on the project direction is expected in Q2 2024 (previously H1 2024)
• Primary Financial Statements — An IFRS Accounting Standard is expected in Q2 2024 (previously H1 2024)

Strategy and Governance

• ISSB Consultation on Agenda Priorities — The feedback on the request for information is now expected in January 2024 (previously December 2023)

Maintenance projects

• Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard— The project has been added to the work plan to reflect amendments issued by the IASB in 2023 with an exposure draft expected in H1 2024
• Annual Improvements to IFRS Accounting Standards — The following projects will have feedback discussions on their exposure draft in January 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)

Research projects

• Business Combinations under Common Control — At its November 2023 meeting, the IASB decided to discontinue this project; a project summary is expected in Q2 2024
• Post-implementation Review of IFRS 15 — Request for information feedback is expected for January 2024 (previously Q1 2024)
• Post-implementation Review of IFRS 9 — After discussing the feedback received at its November 2023 meeting, the IASB will now publish a project summary (expected in H2 2024)

Other projects

• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — Feedback received will be discussed in January 2024 (previously Q1 2024)
• IFRS Accounting Taxonomy Update — Common Practice (Financial Instruments) and General Improvements — Feedback discussions on the proposed IFRS Taxonomy Update published in November 2023 are expected in Q1 2024
• IFRS Sustainability Disclosure Taxonomy — Discussion of the proposed taxonomy feedback is now expected in December 2023 (previously November 2023)

The above is a faithful comparison of the IASB and ISSB work plan on October 30, 2023 and November 20, 2023.

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

The proposed Guideline would address the accounting for life insurance contracts that contain a cash surrender component, from the policy owner’s point of view. The proposed Guideline includes guidance on recognition and measurement of cash surrender value of a life insurance policy, presentation of policy premiums and changes in cash surrender value, and disclosures.

The proposed Guideline:

• requires recognition of cash surrender value as an asset measured at the amount that would be immediately realized by the policy holder if the policy were terminated prior to the death of the insured
• requires presentation of policy premiums and change in cash surrender value on a net basis, where a net debit is reported as expense and a net credit is reported as income; and
• establishes disclosure requirements, including disclosure of cash surrender value in aggregate for all life insurance policies with cash surrender value and the amounts of acquisitions and terminations of life insurance policies during the period

The response deadline is January 31, 2024.

Access the exposure draft on the FRAS Canada website.

While the FRC identified examples of good practice, there is scope for improvement under IFRS 17 in the following key areas:

• Providing quantitative and qualitative disclosures, that are company-specific, enabling users to understand how insurance contracts are measured and presented in the financial statements.
• Ensuring that accounting policies are sufficiently granular and provide clear, consistent explanations of accounting policy choices, key judgements and methodologies, particularly where IFRS 17 is not prescriptive.
• Avoiding any boiler plate wording - narrative should always reflect the company’s particular circumstances.

The full review is available on the FRC website.

On November 6, 2023, the IFRS Foundation issued a proposed IFRS Taxonomy Update, 'IFRS Accounting Taxonomy 2023 — Proposed Update 2 'Common Practice for Financial Instruments, General Improvements and Technology Update''.

The proposed changes reflect:

• common reporting practice relating to the presentation of financial instruments in digital financial statements prepared by banking institutions using IFRS Accounting Standards; 
• general improvements; and
• updates to the IFRS Accounting Taxonomy’s technology

Comments are requested by January 5, 2024.

Refer the proposed changes in the press release on the IFRS Foundation website.

The proposed amendment to IAS 21 (a) defines exchangeability and thus a lack of exchangeability; and (b) specifies how an entity determines the spot exchange rate when a currency lacks exchangeability. 

The AcSB’s due process included:

• ensuring that Canadian entities’ financial reporting needs were considered by the IASB; and
• issuing the AcSB’s own exposure draft on the IASB proposal.

The IASB’s proposals were deemed appropriate for application in Canada and accordingly the amendments have been incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.

The amendments are now in Part I of the CPA Canada Handbook – Accounting, effective for annual reporting periods beginning on or after January 1, 2025. The amendments require entities to apply a consistent approach in assessing whether a currency can be exchanged into another currency and, when it cannot, in determining the exchange rate to use and the disclosures to provide.

Access the effective dates here.

The consultation provides an opportunity for constituents to comment on the IPSASB’s proposed Strategic Objective, and the two main activities to deliver on the Strategic Objective.

In addition to the proposed new maintenance activities and the priorities for these, constituents are also asked to comment on potential future Financial Reporting Work Program priorities, and what the key public sector sustainability reporting issues the IPSASB should consider adding to its Work Program.

The consultation is open for public comment until February 15, 2024.

Review the consultation on the IPSASB website.

Below is an analysis of all changes made to the work plan since our last analysis on September 26,2023.

Standard-setting projects

• Business Combinations — Disclosures, Goodwill and Impairment — An exposure draft is expected in Q1 2024 (previously H1 2024)
• Disclosure Initiative — Subsidiaries without Public Accountability: Disclosures— An IFRS Accounting Standard is now expected in Q2 2024 (previously H1 2024)
• Second Comprehensive Review of the IFRS for SMEs Accounting Standard— The IFRS for SMEs Accounting Standard is now expected in H2 2024 (previously 2024)

Strategy and Governance

• ISSB consultation on agenda priorities — The feedback on the request for information is now expected in December 2023 (previously Q4 2023)

Maintenance projects

• Amendments to the IFRS for SMEs — International tax reform — Pillar Two Model Rules — The project has been removed from the work plan due to the issuance of the IFRS for SMEsamendments on September 29, 2023
• Climate-related and Other Uncertainties in the Financial Statements— A decision on the project’s direction is now expected in Q1 2024 (previously H1 2024)
• International Applicability of the SASB Standards — The project is now considered a maintenance project; SASB amendments are expected in December 2023
• Power purchase agreements — First feedback on the project resulting from the discussions of the IASB advisory groups will be discussed in December 2023
• Provisions —Targeted Improvements — A decision on the project direction is now expected in December 2023 (previously Q4 2023)

Research projects

• Extractive activities — The project summary is now expected in December 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 was published on October 5, 2023and feedback received will be discussed in Q1 2024
• IFRS Accounting Taxonomy Update — Primary Financial Statements — The proposed IFRS Taxonomy update is now expected in H1 2024 (previously 2024)
• IFRS Sustainability Disclosure Taxonomy— Discussion of the proposed taxonomy feedback is now expected in November 2023 (previously Q4 2023)

The above is a faithful comparison of the IASB and ISSB work plan on September 26, 2023, and October 30, 2023.

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

The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.

The exposure draft proposes the following amendments:

The exposure draft does not contain proposed effective dates for the proposed amendments as the intention is to decide on these after the exposure period. However, early application of the amendments is proposed to be permitted.

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

In May 2023, the IASB introduced new requirements to improve transparency in supplier finance arrangements which aimed to assist investors in evaluating changes in a company’s debt, whether they are cash-related or non-cash related, by providing more comprehensive and transparent information.

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

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.