The IASB met in London from 25-27 July 2023. The following topics were discussed:

Dynamic Risk Management (DRM): The IASB made decisions on the potential designation of hedged exposures in the current net open risk position, and the implication of designating non-linear derivatives and ‘off-market’ derivatives in the DRM model.

Maintenance and consistent application: The IASB decided to add a research project to its work plan to explore whether narrow-scope amendments could be made to IFRS 9 with regard to the application of the ‘own use’ exception to some physical power purchase agreements (PPAs). The IASB also discussed the June 2023 IFRIC Update.

Equity Method: The IASB decided how to answer an application question relating to the assessment of impairment and to expand the project’s scope for five of the application questions that were not selected but are considered resolved by the IASB’s tentative decisions.

Business Combinations—Disclosures, Goodwill and Impairment: The IASB made decisions about which improvements to the impairment test to propose in the upcoming Exposure Draft and completed its discussions on proposals to improve information disclosed about business combinations.

Extractive Activities: The IASB received a summary of feedback on its Extractive Activities research project. The feedback relates to suggestions to improve disclosures about an entity’s exploration and evaluation expenditure and activities that the IASB is exploring.

Primary Financial Statements (PFS): The IASB decided not to re-expose the proposals in the Exposure Draft General Presentation and Disclosures. The IASB also decided on transition requirements and gave staff permission to start the balloting process. The IASB decided to require entities to apply the new Standard for annual periods beginning on or after 1 January 2027 with early application permitted and to apply the new Standard retrospectively in accordance with IAS 8.

Provisions—Targeted Improvements: The IASB discussed stakeholder feedback on discount rates for provisions within the scope of IAS 37—specifically, on whether the risks reflected in the rate should include non-performance risk. No decision has been made. However, the IASB decided that IAS 37 should specify the types of costs to include in estimating that expenditure required to settle a present obligation in measuring a provision.

Subsidiaries without Public Accountability—Disclosures: The IASB decided to align the effective date of the new Standard with the PFS Standard (i.e. 1 January 2027) and to permit earlier application of the new Standard.