Date recorded:

The IASB met in London from 22-24 May 2023. The following topics were discussed:

Business Combinations—Disclosures, Goodwill and Impairment: The IASB decided not to proceed with its preliminary view to remove the requirement to perform a quantitative impairment test each year and instead retain the requirement for an entity to perform an annual impairment test. The IASB also decided to maintain its preliminary view that it is infeasible to design a different impairment test that is significantly more effective at a reasonable cost.

IASB work plan update: The staff provided an update on the IASB’s work plan since its last update in March 2023.

Post-implementation review (PIR) of IFRS 15: The IASB approved the publication of a Request for Information (RFI) for the PIR of IFRS 15 and agreed with a comment period of 120 days. The publication of the RFI is expected for the end of June 2023.

Maintenance and consistent application: The IASB decided to include ‘Lessee derecognition of lease liabilities (IFRS 9)’ and ‘Disclosure of deferred difference between fair value and transaction price (IFRS 7 IG)’ to their previously approved annual improvements package. The IASB also decided that early application of the package should be permitted and the comment period for the exposure draft should be 90 days. Furthermore, the IASB gave the staff permission to begin the balloting process for the exposure draft.

Primary Financial Statements: The IASB made decisions about investments in associates and joint ventures accounted for using the equity method, and on issues related to management performance measures and IFRS 8.

Subsidiaries without Public Accountability: The IASB decided to retain the disclosure requirements proposed in the draft Standard, with some targeted changes. The IASB also decided that the paragraph in the draft Standard that addresses materiality of disclosure requirements should be retained. Further, the IASB decided to proceed with its proposal in the ED that disclosure requirements about the transition to a new or amended IFRS Accounting Standard set out in that new or amended Standard apply to eligible subsidiaries. Lastly, the IASB decided that until it issues an amendment to the prospective Standard, eligible subsidiaries would be required to comply with disclosure requirements in amendments to IFRS Accounting Standards that have been issued after the publication of the ED.

Management Commentary: The staff held an educational session on the comparison between the Management Commentary Exposure Draft and the Integrated Reporting Framework. No decisions were made.

Dynamic Risk Management (DRM): The IASB discussed potential illustrative examples of the application of the current DRM model to support stakeholders in their analysis of the model requirements. No decisions were made.

Financial Instruments with Characteristics of Equity (FICE): The IASB decided to propose consequential amendments resulting from the forthcoming FICE ED to the forthcoming Subsidiaries without Public Accountability Standard. The IASB also agreed on a comment period of 120 days for the ED and gave the staff permission to begin the balloting process for the ED. One IASB member indicated an intention to dissent from the proposals in the ED.

Rate-regulated Activities: The IASB decided that the prospective Standard would retain the proposal to require recognition of all regulatory assets and all regulatory liabilities existing at the end of the reporting period. The IASB also decided to retain the proposal to treat any regulatory assets or regulatory liabilities arising from regulated rates denominated in a foreign currency as monetary items when applying IAS 21.

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