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IASB’s Third Agenda Consultation [ED]

Comments to be received by September 27, 2021

Next steps:

The IASB plans to review the Request for Information feedback in November 2021

Last updated:

September 2021

Overview

The IASB is required to undertake a public consultation on its work plan every five years. The primary objective of the agenda consultation is to seek formal public input on the strategic direction and balance of the Board’s work plan.

On March 30, 2021, the International Accounting Standards Board (IASB) launched its third public consultation to seek broad public input on the strategic direction and overall balance of its future work program by publishing a request for information. Comments are requested by September 27, 2021.

Introduction

The request for information includes an introductory section that states the objective of the request for information and describes how responses will help the Board in determining its future work program. The introduction also explains the difference between the IFRS Foundation's five-yearly review of structure and effectiveness that is currently underway and that includes a consultation on sustainability reporting and the IASB's agenda consultation. The IASB's agenda consultation seeks feedback on the priorities of activities within the current scope of the Board’s work, whereas the Trustees’ consultation seeks feedback on a potential expansion in the role of the IFRS Foundation. The IASB is currently working on its management commentary project and could do more on sustainability aspects, should stakeholders wish so, as long as this is connected to financial statements. While there is some connecting middle ground, respondents should not confuse the two initiatives. As the IFRS Foundation Trustees move forward quickly with their initiative, their decisions would be available before the Board makes decisions on its future agenda.

Request for information

The request for information consists of three parts: (1) strategic direction and balance of the Board's activities, (2) criteria for assessing the priority of projects that could be added to the work plan, and (3) financial reporting issues that could be added to the Board’s work plan.

Strategic direction and balance of the Board's activities

Part one of the request for information regarding the strategic direction and balance notes that the IASB's work is currently following six lines:

New IFRS Standards and major amendments to IFRS Standards Maintenance and consistent application of IFRS Standards The IFRS for SMEs Standard Digital financial reporting and the IFRS Taxonomy Understandability and accessibility Stakeholder engagement

In this part of the request for views the IASB is seeking stakeholders’ views on whether the Board should increase, leave unchanged or decrease its current level of focus on each line of work. And while there is a little room for additional work, respondents are asked to assume that the Board’s overall level of resources will remain substantially unchanged during the 2022 to 2026 period.

Criteria for assessing the priority of projects that could be added to the work plan

Part two of the request for information regarding criteria for assessing the priority of projects that could be added to the work plan notes that the Board will use a specified list of seven criteria to assess the potential financial reporting issues that could be added to its work plan to develop new IFRS Standards and major amendments to IFRS Standards. They are:

The importance of the matter to investors Whether there is any deficiency in the way companies report the type of transaction or activity in financial reports The type of companies that the matter is likely to affect, including whether the matter is more prevalent in some jurisdictions than others How pervasive or acute the matter is likely to be for companies The potential project’s interaction with other projects on the work plan The complexity and feasibility of the potential project and its solutions The capacity of the Board and its stakeholders to make timely progress on the potential project.

The criteria are derived from the Due Process Handbook and the 2015 Agenda Consultation. The relative importance of any specific criterion will vary depending on the particular circumstances. Generally, the Board will evaluate potential project for its work plan primarily on the basis of whether the project will meet investors’ needs, while also taking into account the costs of producing the information.

Financial reporting issues that could be added to the Board’s work plan

Finally, part three of the request for information regarding financial reporting issues that could be added to the Board’s work plan refers to 22 projects that have frequently been suggested to the Board for consideration. The request for information seeks stakeholders’ views on what priority they would give each of the potential projects — high, medium or low — and whether their prioritization refers to all or only some aspects included in the project description. Respondents are also invited to suggest additional issues that they believe the Board should add to its work plan for 2022 to 2026.

For further details in respect of the request for information refer to the IASB’s press release.

Other developments

September 2021

On September 27, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to review the Request for Information feedback in November 2021.  

July 2021

On July 23, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to review the feedback on its Request for Information in Q4/2021.

April 2021

On April 30, 2021, IASB staff updated the Work Plan to indicate that the Board plans to review the Request for Information Feedback in H2/2021.

March 2021

On March 30, 2021, the IASB launched its third public consultation to seek broad public input on the strategic direction and overall balance of its future work program by publishing a request for information. Comments are requested by September 27, 2021.

January 2021

On January 29, 2021, the IASB staff updated the Work Plan to indicate that the Board now refers to this project as the Third Agenda Consultation and plans to issue the Request for Information in March 2021.

September 2020

On September 28, 2020, IASB staff updated the Work Plan to indicate that the Board plans to issue a Request for Information in Q1/2021.

April 2020

On April 17, 2020, IASB staff updated the Work Plan to indicate that the Board plans to issue a Request for Information in the 1st half of 2021.

September 2019

The Board met on September 24, 2019 to discuss the staff’s proposed approach to the 2020 agenda consultation and to receive an oral update on the advice provided by the IFRS Advisory Council at its September 2019 meeting. The Board indicated its support for the staff’s proposed approach which is to conduct outreach before the Board publishes a request for information. The objective of the outreach is to develop full descriptions of potential projects to include in the request for information. The Board also indicated its support for the staff’s recommendation to provide a detailed list of potential projects in the request for information.

 

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