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IASB Meeting — 22–25 July 2019

Start date:

End date:

Location: London

IASB (International Accounting Standards Board)

Preview

The IASB met on Monday 22, Wednesday 24 and Thursday 25 July 2019. On Tuesday 23 July the IASB and the US Financial Accounting Standards Board (FASB) met together in public for an education session.

IBOR Reform: The staff summarised the feedback from comment letters and discussed additional issues for consideration before finalising the proposed amendments. The IASB plans to hold an additional meeting in late August to discuss the project. No decisions were made in this session.

Classification of Liabilities as Current or Non-current:  The Board considered liabilities with equity-settlement features as well as transition and early application requirements.

Primary Financial Statements: The Board discussed potential amendments to IAS 34, whether to include special provisions for management performance measures and subtotals that are similar to gross profit, how to classify interest and dividends in the statement of cash flows and how earnings per share should reflect management performance measures. The Board gave the staff permission to begin preparing the Exposure Draft.

Goodwill and Impairment: The Board gave the staff permission to begin preparing the Discussion Paper.

Rate-regulated Activities: The Board decided to include an exception in IFRS 3 for rate-regulated activities. They also discussed the regulatory agreement period and incentive schemes. The Board gave the staff permission to begin preparing the Exposure Draft.   

Disclosure Initiative: The Board decided to add specific disclosure objectives to the requirements in IAS 19.

Dynamic Risk Management: The staff demonstrated how the DRM model is designed to operate. The Board considered some operational simplifications and decided that the application of the model should be optional. The Board also discussed the areas of focus for disclosure.   

Financial Instruments with Characteristics of Equity—Summary of feedback: The Board continued to discuss feedback on the Discussion Paper, focusing on presentation of financial liabilities; presentation of equity instruments and disclosure; contractual terms; users of financial statements and the overall objective, scope and challenges. No decisions were made.

Comprehensive review of the IFRS for SMEs Standard: The Board plans to issue a Request for Information (RFI) in the second half of 2019. At this meeting the Board decided to propose changes to the IFRS for SMEs Standard to reflect IFRS 3, IFRS 10 and IFRS 15. For IFRS 11, the Board decided to retain the current requirements of the IFRS for SMEs Standard. The Board also decided to propose a range of amendments to IFRS Standards and IFRIC Interpretations that have been published since the last review.

Management Commentary: The Board considered how to apply the Conceptual Framework’s qualitative characteristics to information presented in management commentary as well as how to make relevance and materiality judgements. 

Business Combinations under Common Control (BCUCC): The staff presented their analysis of the implications of potential equity investors in BCUCC and the measurement approaches that could be applied.

Implementation Matters: The Board was asked for any feedback on the June meeting of the IFRS Interpretations Committee.   

Joint session with the FASB: The middle day of the IASB meeting had been set aside for a joint meeting with the FASB. The Boards updated each other on projects each Board is working on separately: Segments (FASB); Primary Financial Statements (IASB); Financial Performance Reporting (FASB); Financial Instruments with Characteristics of Equity (IASB); Distinguishing Liabilities from Equity (FASB); IBOR reform (both); Goodwill and Impairment (IASB); Identifiable Intangible Assets and Subsequent Accounting for Goodwill (FASB); Disclosure Initiative (IASB); Disclosure Framework (FASB); and Implementation: Revenue and Leases (FASB).

 

Agenda for the meeting

Monday 22 July 2019 (10:30-18:15)

  • SME Standard review and update
  • Implementation matters: IFRIC Update
  • Classification of liabilities as current or non-current (amendments to IAS 1)
    • Liabilities with equity-settlement features
    • Transition and early application
  • Goodwill and impairment
    • Due process steps and permission to begin the balloting process
  • Management commentary
    • Applying qualitative characteristics
    • Making relevance and materiality judgements
  • Business combinations under common control (BCUCC)
    • Potential equity in BCUCC
    • How measurement approaches could apply for BCUCC

Tuesday 23 July 2019 IASB-FASB joint session (09:00-12:45)

  • Segments: Targeted improvements
  • Primary financial statements / Financial performance reporting
    • Summary of decisions
    • Disaggregation of functional expenses and internal view approach to disaggregation
  • Financial instruments with characteristics of equity / Distinguishing liabilities from equity
  • IBOR reform
    • Effects on financial reporting
    • Facilitation of the effects of the internbank offered rate transition on financial reporting
  • Goodwill and impairment / Identifiable intangible assets and subsequent accounting for goodwill
    • Summary of the IASB's research project
    • Summary of FASB's Invitation to Comment
  • Disclosure initiative / Disclosure framework
    • Targeted Standards level-review of disclosures
    • Fair value measurement and defined benefit plans
    • Feedback received on employee benefit and fair value measurement disclosures
  • Implementation
    • Revenue
    • Leases

Wednesday 24 July 2019 (09:00-17:30)

  • Financial instruments with characteristics of equity
    • Summary of feedback received on the discussion paper
    • Presentation of financial liabilities
    • Presentation of equity instruments and disclosure
    • Contractual terms
    • Users of financial statements
    • Overall objective, scope and challenges
  • Rate-regulated activities
    • Interaction with IFRS 3
    • Regulatory agreement period
    • Incentive schemes
    • Consultation document
    • Effect analysis
    • Due process and permission to begin the balloting process
  • Disclosure initiative
    • Background and summary of staff recommendations
    • IAS 19 Disclosure Objectives - Defined Benefit Plans
    • IAS 19 Disclosure Objectives - Employee Benefits other than Defined Benefit Plans
  • Primary financial statements
    • Summary of tentative decisions
    • Amendments to IAS 34
    • Management performance measures and subtotals similar to gross profit
    • Classification of interest and dividends in the statement of cash flows
    • Management performance measures and adjusted earnings per share
    • Due process steps and permission to begin the balloting process

Thursday 25 July 2019 (08:30-12:00)

  • IBOR reform and the effects on financial reporting
    • Summary of feedback from comment letters
    • Additional issues for consideration before finalising the proposed amendments
  • Dynamic risk management
    • DRM model demostration
    • Operations simplifications
    • Optional application and areas of focus for disclosure

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

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