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.

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.

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.

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.

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.

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.

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.

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.

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.

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.