The Board discussed four topics.

Primary Financial Statements

The Board supported refining the definition of investing income and expenses, providing a list of items that would be included or excluded from the investing category and renaming the investing category as ‘income from investments’. However, the Board did not support Labelling the subtotal above the ‘income from investments’ section as ‘operating profit’. 

There was an extended discussion about where the share of profit or loss from associates and joint ventures should be reported, and whether that should depend on whether the associate or joint venture is ‘integral’ to the reporting entity. No clear view emerged. The planned Discussion Paper will set out the pros and cons of different approaches.

The Board supported recommendations simplifying the composition of finance income/expense, clarifying what constitutes financing activities and using cash and cash equivalents as a proxy for excess cash. 

The Board narrowly agreed with renaming the two categories of OCI which would mean abandoning the use of the term ‘other comprehensive income’.

Wider Corporate Reporting

The Board decided to add a new project to its work programme called Wider Corporate Reporting. The focus of the project will be the Practice Statement issued in 2010 on Management Commentary which the Board will review and update to help address the lack of alignment and integration between wider corporate reporting and financial reporting.

Improvements IFRS 8 Operating Segments

The Board published Exposure Draft Improvements IFRS 8 Operating Segments (Proposed amendments to IFRS 8 and IAS 34) in March 2017. The Board had a preliminary discussion of the feedback received, but did not make any decisions. Respondents had mixed views on the proposals, and Board member views were also mixed. Several Board members cautioned against broadening the scope of the project in the light of the feedback received on the IFRS 8 PIR which indicated that IFRS 8 was generally working well.  The staff will provide recommendations at a future meeting.

Dynamic Risk Management

The Board generally supported developing a cash flow hedge accounting model for accounting for dynamic risk management.  Board members emphasised the need to test the model with stakeholders early in the process and get early feedback on its feasibility before the Board invests more time and resources in developing it.

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