IASB Meeting — 11–13 December 2018

Start date:

End date:

Location: London

IASB (International Accounting Standards Board)



The IASB met on Tuesday 11, Wednesday 12 and Thursday 13 December 2018.

The Board decided to update a reference to the Conceptual Framework in IFRS 3.  

The Board decided that an entity can apply the Dynamic Risk Management model if two criteria are met. The first is that there must be an economic relationship between the target profile, the asset profile and the derivatives designated within the DRM model. This criterion needs further development around how strong/good the economic relationship needs to be.  The second is that any designation must not reflect an imbalance that would create misalignment that could result in an accounting outcome inconsistent with the purpose of the DRM accounting model.

The Board discussed whether a Business Combination under Common Control should be accounted for using an approach based on the acquisition method set out in IFRS 3 Business Combinations when it affects non-controlling interests. Board members expressed a variety of concerns about the staff proposal.

For the Primary Financial Statements project, the Board decided to prohibit the use of columns to present information about MPMs in the statement(s) of financial performance. The Board also decided to permit, but not require, the subtotal ‘operating profit before depreciation and amortisation’ on the face of the statement(s) of financial performance. An entity would need to reconcile any other similar measure (like EBITDA) to this sub-total. IFRS Standards will not impose any restrictions on the use of EBIT or EBITDA.

The Board decided to move the IBOR project to its standard-setting programme and focus on issues affecting financial reporting leading up to IBOR reform and when the reform is enacted. 

At the October 2018 meeting, the Board discussed concerns and implementation challenges raised by stakeholders about the requirements in IFRS 17 Insurance Contracts. At this meeting the Board considered 12 of those issues and decided to amend IFRS 17 for presentation of insurance contracts on the statement of financial position but not to make amendments for the other issues. The remaining nine topics will be considered at a future meeting.

In the Disclosure Initiative the Board decided to amend paragraphs 117-124 of IAS 1 to require entities to disclose their material accounting policies rather than their significant accounting policies. This amendment would be issued together with the guidance and examples being developed for inclusion in the Materiality Practice Statement.

In the Rate-regulated Activities project the Board considered staff recommendations relating to the discount rate to be used when measuring regulatory timing differences. There was significant debate and the Board was split in its views. 

The staff gave updates on the projects on Provisions and Pensions Benefits that Depend on Asset Returns as well as the Research Programme.


Agenda for the meeting

Tuesday 11 December 2018

Afternoon session (15:30-16:00)

  • IFRS 17 Insurance Contracts (education session)

Wednesday 12 December 2018

Morning session (10:15-12:30)

  • Updating a reference to the Conceptual Framework (Amendments to IFRS 3)
    • Contingent liabilities, contingent assets, transition and due process
  • Provisions
    • Project update
  • Dynamic risk management
    • Minimum performance requirements
  • Business combinations under common control
    • Approach for transactions that affect non-controlling interest

Afternoon session (13:15-17:00)

  • Primary financial statements
    • Presenting management performance measures using columns
    • EBITDA
  • Research programme
    • Research update
  • Pensions benefits that depend on asset returns
    • Asset returns
  • IBOR reform and the effects on financial reporting
    • Research findings

Thursday 13 December 2018

Morning session (10:00-12:00)

  • Rate-regulated activities
    • Discount rate
  • Disclosure initiative
    • Significance and materiality

Afternoon session (13:00-16:45)

  • IFRS 17 Insurance Contracts
    • Presentation of insurance contracts on the statement of financial position
    • Discount rates, risk adjustment and OCI option
    • Variable fee approach
    • Business combinations
    • Future cash flows in the measurement of reinsurance contracts held
    • The treatment of accounting estimates in interim financial statements
  • Implementation matters
    • Accounting policy changes
    • Annual Improvements to IFRS Standards 2018–2020 Cycle


Agenda papers for this meeting are available on the IASB's website.

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