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IASB (International Accounting Standards Board) (blue) Image

Updated IASB work plan — Analysis (January 2022)

28 Jan 2022

Following the IASB's January 2022 meeting, we have analysed the IASB work plan to see what changes have resulted from the meetings and other developments since the work plan was last revised in December 2021.

Below is an analysis of all changes made to the work plan since our last analysis on 17 December 2021.

Stan­dard-set­ting projects

  • Management Commentary — Discussion on the feedback from the exposure draft is expected in March 2022 (previously Q1 2022).

Main­te­nance projects

  • Lack of Exchangeability (Amendments to IAS 21) — Decision on the direction of the project is expected in Q2 2022.
  • Non-current Liabilities with Convenants (Amendments to IAS 1) — Discussion on the feedback from the exposure draft is now expected in Q2 2022 (previously H1 2022).
  • Provisions — Targeted Improvements — Decision on the project’s direction is now expected in February 2022.
  • Supplier Finance Arrange­ments — Feedback on the exposure draft is expected in Q2 2022 (previously H1 2022).

Research projects

  • Business Com­bi­na­tions under Common Control — The direction of the project phase is the current milestone; no expected date is given.
  • Equity Method — Decision of the direction of the project is expected in March 2022 (pre­vi­ously Q1 2022).
  • Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12 —Feedback statement is now expected in Q2 2022 (previously H1 2022).
  • Post-implementation Review of IFRS 9 — Classification and Measurement —Discussion on the feedback to the request for information is now expected in March 2022 (pre­vi­ously H1 2022).

Other projects

  • IFRS Taxonomy Update — 2021 Tech­nol­ogy UpdateFeedback on proposed update is expected in March 2022 (previously Q1 2022).
  • IFRS Taxonomy Update — Initial Ap­pli­ca­tion of IFRS 17 and IFRS 9 — Com­par­a­tive In­for­ma­tion— IFRS Taxonomy Update is now expected in March 2022.
  • Research Programme — Project has been added to the work plan.

The above is a faithful com­par­i­son of the IASB work plan at 23 November 2021 and 17 December 2021. For access to the current IASB work plan at any time, please click here.

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January 2022 IASB meeting notes posted

28 Jan 2022

The IASB met in London on Tuesday 25 January 2022. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed:

Maintenance and Consistent Application

In April 2021, the IASB published ED/2021/4 Lack of Exchangeability, which proposed to amend IAS 21. The comment period ended in September 2021. The purpose of this paper was to provide the IASB with a summary of feedback on the ED. There was general support for the proposals, with some suggestions. The IASB was not asked to make any decisions at this meeting.

No comments were made by IASB members about the most recent meeting of the IFRS Interpretations Committee.

Business Combinations under Common Control

The IASB published its Discussion Paper (DP) Business Combinations under Common Control (BCUCC) in November 2020. At this meeting the staff presented detailed summaries of feedback on the remaining topics from the DP: how to apply each measurement method (being the acquisition method and the book-value method) and disclosure. The feedback was very mixed. The IASB did not object to the plan for deliberating the preliminary views in the DP.

Board work plan update

The staff gave the IASB an overview of its technical projects to support decisions about whether to add or remove projects, as may be discussed in individual project papers and an assessment of overall progress on the work plan, including project prioritisation and timing. The paper set out projects completed since the last update, listed the projects out for consultation and noted that no documents are expected to be published for consultation within approximately the next six months. (Note: this conclusion relates only to the IASB. We expect the new ISSB will publish consultation documents in the next six months). There was no discussion of this paper.

Approach to prioritising matters arising from post-implementation reviews

The staff have developed proposals to provide a more consistent approach to prioritising matters arising from post-implementation reviews (PIRs). The IASB supported the recommendations, which consider the nature of the evidence collected, what factors should lead to further action and how to prioritise projects.

Feedback on IFRS Taxonomy 2021—Proposed Update

The staff gave an oral update on responses to PTU/2021/3 IFRS Taxonomy 2021—Proposed Update 3—Initial Application of IFRS 17 and IFRS 9—Comparative Information (Amendment to IFRS 17). Only two comment letters were received and the staff expect to finalise the update in March.

Primary Financial Statements

The IASB decided to confirm the requirement for an entity to: disclose a description of why an MPM communicates management’s view of performance, including an explanation of how the MPM is calculated and how the measure provides useful information about the entity’s performance; disclose a reconciliation between an MPM and the most directly comparable subtotal or total specified in the Standards; add a requirement for an entity to disclose, for each item reconciling an MPM to the most directly comparable subtotal or total specified by IFRS Standards, the amount(s) related to each line item(s) in the statement(s) of financial performance. The IASB decided not to specify that one way to meet this requirement is to use a side-by-side columnar format for the reconciliation, but will provide an illustrative example using side-by-side disclosure.

The staff had recommended the IASB retain the proposed requirements to disclose the income tax effects and the effect on NCI for each item disclosed in a reconciliation between an MPM and the most directly comparable IFRS specified subtotal or total and how the entity determined the income tax effect. The IASB decided not to vote on this paper before further research has been conducted by the staff.

Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

ISSB (International Sustainability Standards Board) (blue) Image

IFRS Foundation announces ISSB Vice-Chair and Special Advisor to the ISSB Chair

27 Jan 2022

The Trustees of the IFRS Foundation have announced the appointment of Sue Lloyd as Vice-Chair of the International Sustainability Standards Board (ISSB). In addition, Janine Guillot has been appointed as Special Advisor to the ISSB Chair.

Ms Lloyd currently serves as Vice-Chair of the International Accounting Standards Board (IASB) and Chair of the IFRS Interpretations Committee and will step down from these roles to take up her new position on 1 March 2022. Ms Lloyd has been appointed for an initial four-year term. The press release notes that her appointment completes the current search for ISSB Vice-Chair(s). It also notes that the Trustees have begun the process of identifying successors for her current roles.

Ms Guillot is the current Chief Executive Officer of the Value Reporting Foundation (VRF), which was formed through the merger of the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC) in 2021. She has been appointed effective 1 February 2022. Ms Guillot will provide strategic advice and counsel to the Chair of the ISSB with specific responsibilities for the consolidation of the VRF into the IFRS Foundation and the establishment of the ISSB. She will serve a two-year term, renewable for one year. A further Special Advisor to the ISSB Chair from the Asia-Oceania region is expected to be appointed who will focus on the ISSB’s engagement with developing and emerging economies, as well as with smaller companies.

The press release also highlights that the Trustees are progressing with their search for the remaining ISSB members, with potential candidates encouraged to submit their applications. Interviews for these roles are scheduled to begin in early February 2022.

Please click for more information in the press release on the IFRS Foundation website.

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Call for applications: Members of the EFRAG SRB

27 Jan 2022

The envisioned new structure of the European Financial Reporting Advisory Group (EFRAG) would see the establishment of a second Board: the Sustainability Reporting Board (SRB). A call for candidates for the SRB has now been published.

The call for applications is available through the press release on the EFRAG website. Candidates can only be nominated by EFRAG Member Organisations. Nominations for membership are invited by 10 February 2022.

In addition, EFRAG is looking for candidates for both the Chair and the members of its Sustainability Reporting Technical Expert Group. More information is available here.

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Pre-meeting summaries for the February 2022 IFRS Interpretations Committee meeting

26 Jan 2022

The IFRS Interpretations Committee (Committee) meets on Tuesday 1 February 2022. The Committee will discuss an ongoing matter, the comment letter analysis for one tentative agenda decision and an educational paper.

Ongoing matter

IAS 37 Provisions, Contingent Liabilities and Contingent Assets—Negative low or new energy vehicle credits: In its November 2021 meeting, the Committee discussed a submission asking whether an entity with negative low emission vehicle credits has a present obligation that meets the definition of a liability in IAS 37. In the meeting, Committee members generally agreed with the staff's analysis that an entity that has generated negative credits has an obligation that meets the definition of a liability in IAS 37. Some Committee members suggested refining the words in the tentative agenda decision and some members suggested the analysis of the implications of the consensus in IFRIC 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment. The staff recommend publishing the tentative agenda decision with proposed refinements to the wordings.

Comment letter analysis

IFRS 9 Financial Instruments and IAS 20 Accounting for Government Grants and Disclosure of Government Assistance—TLTRO III Transactions: In its June 2021 meeting, the Committee discussed a submission asking how banks account for the European Central Bank (ECB)’s Targeted Longer-Term Refinancing Operations (TLTRO). Specifically, the submission asked whether the TLTRO III tranches are loans at a below-market interest rate which should be accounted for as a government grant. The staff have analysed the comment letters and recommend finalising the agenda decision with minor editorial changes.

Education session

IFRS 17 Insurance Contracts—Profit recognition for annuity contracts: The Committee received a submission about determining how to recognise unearned profit as revenue based on the services an entity provides to policyholders of annuity contracts in a scenario where an entity includes unearned profit in the measurement of insurance contracts and subsequently recognises it as revenue as the entity provides services. The paper provides an overview of the applicable IFRS 17 requirements and other background related to those requirements.

Administrative matters

Work in progress: The following new matters have not yet been presented to the Committee:

  • Rent Concessions: Lessors and Lessees (IFRS 16 and IFRS 9)
  • Special Purpose Acquisition Companies (SPAC): Accounting for warrants at acquisition (IFRS 2 or IAS 32)
  • Special Purpose Acquisition Companies (SPAC): Classification of Public Shares as Liabilities or Equity (IAS 32)

The full agenda for the meeting and our com­pre­hen­sive pre-meet­ing summaries can be found here.

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IPSASB issues non-substantive changes to its standards

25 Jan 2022

The International Public Sector Accounting Standards Board (IPSASB) has issued 'Improvements to IPSAS, 2021'.

The pronouncement includes minor improvements to IPSAS to address issues raised by stakeholders and minor amendments sourced from recent IFRS improvements and narrow scope projects.

Please click for more information and access to the pronouncement on the IPSASB website.

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Summary of the November 2021 CMAC meeting

24 Jan 2022

Representatives from the International Accounting Standards Board (IASB) met with the Capital Markets Advisory Council (CMAC) by video conference on 11 November 2021. Notes and recording from the meeting have now been released.

The topics discussed at the meeting included:

  • IASB update
  • Goodwill and impairment
  • Forthcoming Exposure Draft: Supplier Finance Arrangements — Proposed amendments to IAS 7 and IFRS 7.

The meeting summary is available on the IASB website. In addition, the meeting page offers record­ing of meeting.

The next CMAC meeting will be held on 17 March 2022.

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FRC opens applications for its Stakeholder Insight Group

24 Jan 2022

The Financial Reporting Council (FRC) is opening applications for its Stakeholder Insight Group (SIG), a new cross-stakeholder panel that will represent preparers, investors, audit committee chairs and other key stakeholders, including reporting framework owners and civil society groups.

The FRC is seeking to appoint 20 members to the SIG, 10 to serve a nine-month term and 10 to serve an 18-month term. Membership terms will commence on 1 April 2022 and SIG meetings will be held quarterly. These meetings will be an opportunity for members to:

  • share insights on key opportunities and potential areas of focus for the FRC;
  • share perspectives on key areas of concern and emerging risks relating to accounting, reporting, auditing and governance issues;
  • provide input on policy development, the UK Corporate Governance Code, the UK Stewardship Code and the FRC’s approach to ESG and Climate reporting;
  • provide comments on regular enforcement and supervision activities such as Audit Quality Reviews and Enforcement Reviews; and 
  • consider and respond to requests for input and advice from the FRC relating to thematic reviews and other ad-hoc projects.

Both new participants and members of previous FRC advisory groups can apply to join the SIG. Applications are open until Friday 11 February. 

Further information is available on the FRC website

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February 2022 IFRS Interpretations Committee meeting agenda posted

21 Jan 2022

The IFRS Interpretations Committee has posted the agenda for its next meeting, which will be held by video conference on 1 February 2022.

The Committee will discuss the following:

  • IAS 37 — Negative low emission vehicle credits
  • IFRS 9 and IAS 20 — TLTRO III Transactions
  • IFRS 17 — Profit recognition for annuity contracts
  • Work in progress

The full agenda for the meeting can be found here. We will post any updates to the agenda, our com­pre­hen­sive pre-meet­ing summaries as well as observer notes from the meeting on this page as they become available.

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Leaf - sustainability (green) Image

EFRAG publishes working papers on sustainability reporting standards

21 Jan 2022

The Project Task Force on European Sustainability Reporting Standards (PTF-ESRS) of the European Financial Reporting Advisory Group (EFRAG) has released working papers on the first draft standards on sustainability reporting.

The papers reflect the current state of the standard-setting work carried out by the Task Force following the due process the PTF-ESRS has defined for itself.

The cover note that accompanies the set of working papers sets out the intended architecture and structure of the standards, offers a draft index for the European Sustainability Reporting Standards as appendix 1 and access to the individual working papers as appendix 2. The drafts in the working papers published today cover four cross-cutting standards (of a total of five), two conceptual guidelines (of a total of six) and the ESRS E1 Climate change. The cover note highlights that the other working papers will be published in two further batches within the next weeks.

EFRAG emphasises that the publication of the working papers is to ensure a transparent process, it is not a public consultation. A future consultation is mentioned in the cover note, however, not date is given.

Please click to access the cover note linking to the working papers on the EFRAG website.

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