2023 Annual Improvements to the IFRSs [ED]

Comments are required by (i) AcSB on November 27, 2023 and (ii) IASB on December 11, 2023

Next steps:

The IASB will consider the comments it receives on the proposals in this Exposure Draft and will decide whether to proceed with the proposed amendments to the Accounting Standards and accompanying guidance in January 2024.

Last updated:

November 2023


At its February 2023 meeting, the International Accounting Standards Board (IASB) discussed several proposed amendments that will be included in the next Annual Improvements to IFRS Accounting Standards cycle, as follows:

  • an amendment re “cost method” to paragraph 37 of IAS 7 to replace the term ‘cost method’ with ‘at cost’ – see IASB project;
  • an amendment re “credit risk disclosures” (a) to paragraph IG1 of IFRS 7 to add a statement that the implementation guidance accompanying IFRS 7 does not illustrate all the requirements in IFRS 7; and (b) an amendment to paragraph IG20B of IFRS 7 to simplify the wording – see IASB project;
  • amendments re “determination of a de facto agent” to clarify the requirements in paragraph B74 of IFRS 10 – see IASB project;
  • amendments re “gain or loss on derecognition” to paragraph B38 of IFRS 7 (a) to replace the reference to paragraph 27A of IFRS 7 with a reference to paragraphs 72–73 of IFRS 13; and (b) to replace the phrase ‘inputs that were not based on observable market data’ with ‘unobservable inputs’ – see IASB project;
  • amendments re “hedge accounting by a first-time adopted” to (a) paragraphs B5–B6 of IFRS 1 to add cross-references to paragraph 6.4.1 of IFRS 9; and (b) paragraph B6 of IFRS 1 to replace the word ‘conditions’ with ‘qualifying criteria’ – see IASB project; and
  • amendments re “transaction price” to IFRS 9 to revise the wording in paragraph 5.1.3 of IFRS 9 and to delete the reference to ‘transaction price’ and the associated references to IFRS 15 from Appendix A - see IASB project.

On April 29, 2023, the IASB staff updated the IASB Work Plan to indicate that the IASB Plans to issue the 2023 Annual Improvements Exposure draft in Q3/2023.

At its Feb­ru­ary 2023 meet­ing, the IASB dis­cussed additional pro­posed amend­ments that will be in­cluded in the next An­nual Im­prove­ments to IFRS Ac­count­ing Stan­dards cy­cle, as fol­lows:

  • amendment re: “lessee derecognition of lease liabilities” to propose an amendment to paragraph 2.1(b)(ii) of IFRS 9 to add a cross-reference to paragraph 3.3.3 of IFRS 9 and to require an entity to apply this proposed amendment prospectively – see IASB project;
  • amendment re: “disclosure of deferred difference between fair value and transaction price” to propose an amendment to paragraph IG14 accompanying IFRS 7 to make it consistent with paragraph 28 of IFRS 7 – see IASB project.

On September 12, 2023, the IASB published these proposed narrow-scope amendments to IFRS Accounting Standards and accompanying guidance as part of its periodic maintenance of the Accounting Standards.

Download the IASB exposure-draft.

Comments are requested by December 11, 2023

Other developments

October 2023

In October 2023, the AcSB issued its Exposure Draft which corresponds to the IASB’s Exposure Draft on this topic. Comments are requested by November 27, 2023.

September 2023

In Sep­tem­ber 2023, the IASB pub­lished pro­posed nar­row-scope amend­ments to IFRS Ac­count­ing Stan­dards and ac­com­pa­ny­ing guid­ance as part of its pe­ri­odic main­te­nance of the Ac­count­ing Stan­dards. Com­ments are re­quested by De­cem­ber 11, 2023.

July 2023

In July 2023, the IASB staff up­dated the work plan to in­di­cate that the Board plans to issue na Ex­po­sure Draft in September 2023.


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