There are six topics on the agenda.

Wednesday 24 January

The meeting starts with a continuation of the discussion on Primary Financial Statements. There are two topics, the presentation of management performance measures and the presentation of the results of associates and joint ventures.  The staff have recommendations for when a management performance measure should be required, where the reconciliation between the measure and an IFRS-defined measure should be located, what constraints should be placed on the measure, additional disclosure requirements when such a measure is presented and the interaction with segment profit or loss and existing regulatory requirements for non-IFRS measures. In relation to associates and joint ventures, the staff are recommending that entities be required to present the results of ‘integral’ associates and joint ventures separately from ‘non-integral’ associates and joint ventures.

The Board will consider the appropriate accounting for non-derivative instruments with equity hosts with complex payoffs. This type of instruments has not been discussed by the Board before and was identified during the review of a pre-ballot draft of the Financial Instruments with Characteristics of Equity Discussion Paper. The instruments under consideration give rise to claims against the entity that are limited to the entity’s available economic resource, but the claims are also affected by other variables such as a commodity index.  The Board will consider whether the embedded derivative should be accounted for separately, deeply out of the money options should be excluded from the classification assessment or requiring information through attributing particular income and expenses to specific classes of equity.

Thursday 25 January

The staff will give the Board an update on the Conceptual Framework project. The final document is expected to be published in March 2018.

The Board will continue its discussions on accounting for Goodwill. The staff are recommending that the Board remove the requirement in IAS 36 to use pre-tax inputs when calculating value in use. They are also recommending that the Board remove the requirement in IAS 36 to exclude cash flows relating to uncommitted future restructurings and asset enhancements when calculating value in use.

The Board will consider two IFRS Implementation Issues referred to the Board by the IFRS Interpretations Committee. The first is a possible research project on commodity loans and related transactions. The second is a recommended annual improvement to remove the requirement in IAS 41 to use pre-tax cash flows when fair valuing a biological asset.

The Board will start considering the feedback from its Post-implementation review of IFRS 13 Fair Value Measurement. The papers provide a review of academic literature, feedback from the request for information and a summary of other research conducted by the staff.  This is an education session, so there are no questions for the Board.

More information

Our pre-meeting summaries are available on our January meeting note page and will be supplemented with our popular meeting notes after the meeting.