June 2018 IASB meeting agenda posted

08 Jun, 2018

The IASB will meet in London on 19–21 June 2018 to discuss fifteen topics, including an educational session with the FASB.

The educational session will be held on 19 June 2018 with the FASB and discuss the following topics:

  • Segments
  • Primary financial statements
  • Disclosure framework and disclosure initiative
  • Fair value PIR and FASB FV disclosure project
  • Goodwill and impairment
  • Implementation:
    • Revenue
    • Leases
  • Update on all projects not covered

The IASB only sessions will be held on 20 and 21 June 2018 and discuss the following topics:

  • Disclosure initiative — disclosure objectives:
    • Principles of disclosure
    • Targeted standards-level review of disclosures
    • Definition of material
  • Dynamic risk management:
    • Summary of discussions to date
    • Derivatives used for DRM purposes
    • Financial performance
  • Research programme: update
  • IBOR reform: research project proposal
  • Primary financial statements:
    • Preliminary analysis on applying project proposals to financial entities
    • Preliminary findings on current reporting practice
    • Financial performance reporting
  • Insurance contracts:
    • Annual improvements
    • Annual improvements on coverage units
  • Implementation
  • Islamic finance consultative group update
  • Business combinations under common control:
    • Way forward for transactions affecting NCI

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.

Summary of the April 2018 ASAF meeting now available

08 Jun, 2018

The staff of the International Accounting Standards Board (IASB) have made available a summary of the discussions of the Accounting Standards Advisory Forum (ASAF) meeting held in London on 16 and 17 April 2018.

The topics covered during the meeting were the following (numbers in brackets are ref­er­ences to the cor­re­spond­ing para­graphs of the summary):

  • Rate-regulated activities (1–9): ASAF members discussed (1) unit of account and asset/liability definitions and (2) scope of the model. In addition, the ASAF members discussed the development of communication materials.
  • Disclosure initiative — Principles of disclosure (10–24): ASAF members discussed (1) location of information that includes IFRS information outside of financial statements and non-IFRS information within financial statements and (2) accounting policy disclosures.
  • Commodity loans and related transactions (25–43): ASAF members discussed several topics related to items described in the Board’s January 2018 meeting. These include: (1) the extent that entities in their jurisdictions enter into transactions, (2) diversity in accounting, (3) standard-setting activities, and (4) potential standard-setting activities.
  • Accounting policies and accounting estimates (44–48): ASAF members were provided feedback on Exposure Draft, Accounting Policies and Accounting Estimates, and provided views on next steps for the project.
  • Is financial reporting still an effective tool for equity investor in Australia? (49–51): ASAF members viewed a presentation from by the AASB on financial reporting’s effectiveness for equity investors in Australia.
  • Goodwill and impairment (52–71): The ASAF members discussed (1) a staff proposal that amends the impairment testing of goodwill by considering movements in headroom and (2) the IFRS 3 requirement to recognize all identifiable intangible assets acquired in a business combination separately from goodwill.
  • Primary financial statements (72–88): ASAF members provided views the Board’s tentative decisions to date on the application to financial entities and aggregation and disaggregation.
  • IFRS Foundation Due Process Handbook review (89–99): ASAF member were updated on the Trustees’ review of the Due Process Handbook and provided views on its scope.
  • Project updates and agenda planning (100–104): ASAF members were updated on the IASB research pipeline and provided advice on how to proceed with the post-implementation reviews of IFRS 10, IFRS 11, and IFRS 12.

A full summary of the meeting is available on the IASB's website.

COSO and WBCSD issue draft guidance to supplement COSO’s updated enterprise risk management (ERM) framework

08 Jun, 2018

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the World Business Council for Sustainable Development (WBCSD) have published, for comment, draft guidance: ‘Enterprise risk management: Applying enterprise risk management to environmental, social and governance-related risks’, designed to supplement COSO’s updated enterprise risk management (ERM) framework, ‘Enterprise risk management - Integrating with strategy and performance’.

The objective of the draft guidance is summarised in the introduction which states that:

Businesses face an evolving landscape of emerging environmental, social and governance (ESG)-related risks that can impact a company’s profitability, success and even survival. COSO and WBCSD believe that leveraging a company’s enterprise risk management governance and processes can support identification, assessment and mitigation of ESG-related risks. This guidance is designed to facilitate the process. 

The draft guidance applies COSO’s framework Enterprise risk management – Integrating with strategy and performance, to provide guidance to risk management professionals, risk owners and sustainability professionals on integrating ESG-related risks into ERM. By doing so, the draft guidance suggests that a company can achieve: 

  • enhanced company resilience;
  • a common language for articulating risks;
  • improved resource deployment;
  • enhanced pursuit of opportunity;
  • realised efficiencies of scale in considering ESG-related risks entity-wide; and
  • improved disclosure. 

The draft guidance is set in in seven modules starting with establishing governance structures and processes, then moving through the ERM process to identify, assess, respond, review and communicate ESG-related risks, while maintaining a line of sight to the business context and strategy. 

It is designed to be used by any entity facing ESG-related risks – from startups, not-for-profits, for-profit, large corporations or government entities – whether public and private. 

Comments on the draft guidance are requested until 30 June 2018.

The draft guidance is available on the COSO website.

IFRS Foundation Trustees seek IASB Board members

08 Jun, 2018

The IFRS Foundation Trustees are seeking to appoint two new Board members, one from the Americas and one from the Asia-Oceania region.

IASB members are appointed for an initial five-year term with the possibility of being reappointed for another three years (in exceptional circumstances for another five years). Nominations for IASB board membership close on 6 July 2018. For more information, see the press release on the IASB’s website.

Recordings from the June 2018 DPOC meeting

07 Jun, 2018

The Trustees of the IFRS Foundation are currently meeting in London. On 5 June, the Due Process Oversight Committee (DPOC) of the Trustees held its meeting (the only part of the Trustees meeting held in public). Recordings from the meeting are now available.

The DPOC members discussed the following topics:

  • Introduction and Actions from DPOC meeting held on 31 January 2018
  • Technical activities: Key issues and update
  • Agenda decisions: The IFRS Interpretations Committee’s approach in responding to questions
  • Due Process Handbook Review
    • Summary of discussions and progress since the last DPOC meeting
    • Analysis of key due process steps as set out in the Due Process Handbook
  • Management commentary advisory group membership
  • Correspondence: Update

The recordings are available on the IASB's website.

Draft programme for the World Standard-setters meeting in October available

07 Jun, 2018

A draft programme has been released for the upcoming World Standard-setters meeting, which is being held in London on 1-2 October 2018.

A summary of the programme is set out below:

Monday, 1 October 2018 (09:00 - 18:15)

  • Opening remarks
  • Welcome address
  • IASB technical programme update
  • The need for a Conceptual Framework
  • Overview of the Conceptual Framework
  • Conceptual Framework – small-group discussions
  • Breakout sessions
    • Business combinations under common control
    • Better communications — focus on primary financial statements and disclosures
    • Financial instruments with characteristics of equity — discussion paper
    • Goodwill and impairment
    • IFRS Interpretations Committee update and implementation of new standards strategy

Tuesday, 2 October 2018 (09:00 - 13:00)

  • Breakout sessions (repeated from previous day)
  • Feedback on Conceptual Framework sessions
  • Management Commentary Practice Statement

Papers for the meeting are expected to be made available in due course on the IASB's website. The WSS meeting will be immediately followed by a meeting of the International Forum of Accounting Standard Setters (IFASS).

Summary of the April 2018 ITCG meeting

06 Jun, 2018

The IASB has published the summary to the IFRS Taxonomy Consultative Group (ITCG) meeting held on 19 April 2018.

The ITCG discussed the following:

  • Better communication theme — short update
  • Principles of Disclosure ― technology and digital reporting
  • IFRS Taxonomy — technology review
  • IFRS Taxonomy implementation support
  • IFRS Taxonomy content — areas for discussion
  • Handling of entity-specific disclosures
  • Update by ITCG members on developments directly relating to the IFRS Taxonomy and/or the use of technology for financial reporting

For more in­for­ma­tion, see the summary on the IASB’s website.

EFRAG publishes May 2018 update of 'EFRAG Update'

06 Jun, 2018

The European Financial Reporting Advisory Group (EFRAG) has published an 'EFRAG Update' summarising public technical discussions held and decisions made during May 2018.

The Update reports on the EFRAG Board meeting on 30 May 2018 and the EFRAG TEG webcast on 16 May 2018.

The Update also lists EFRAG publications issued in May which solely consisted of EFRAG's endorsement advice relating to the use in the European Union and European Economic Area of the IASB's Publication Plan Amendment, Curtailment or Settlement (Amendments to IAS 19).

Please click to download the May EFRAG Update from the EFRAG website.

Agenda for June 2018 joint CMAC-GPF meeting

05 Jun, 2018

Representatives from the International Accounting Standards Board (IASB) will meet with both the Capital Markets Advisory Council (CMAC) and Global Preparers Forum (GPF) in London on 14 and 15 June 2018. The agenda for the joint meeting has been released.

The full agenda for the meeting is sum­marised below:

Thursday, 14 June 2018 (10:10-17:15)

  • IASB update.
  • Targeted Standards level review of disclosures project — staff presentation and breakout sessions on a list of nine IFRS Standards that the Board is considering as potential candidates for a targeted Standards-level review of disclosures.
  • Primary financial state­ments — staff pre­sen­ta­tion and breakout sessions related to the com­pa­ra­bil­ity and flex­i­bil­ity in per­for­mance reporting.

Friday, 15 June 2018 (09:00-12:10)

  • Business combinations under common control — staff pre­sen­ta­tion and breakout sessions.
  • Management commentary — staff pre­sen­ta­tion and breakout sessions related to supporting management commentary.

For more information, see the meeting page on the IASB's website.

Agenda and pre-meeting summaries for the June 2018 IFRS Interpretations Committee meeting

05 Jun, 2018

The IFRS Interpretations Committee meets in London on Tuesday 12 June 2018. The Committee will discuss seven issues, including two new interpretation requests.

Finalisation of a draft agenda decision

The staff are recommending that the Committee finalise a tentative agenda decision in relation to the classification of short-term loans and credit facilities and whether a short-term bank arrangement that is always overdrawn can qualify as a component of cash and cash equivalents.

Continuing discussions

The Committee will continue its discussions in relation to three matters.

IAS 12 Income Taxes Deferred tax—tax base of assets and liabilities. The staff are recommending an amendment to IAS 12 to narrow the scope of the initial recognition exemption so that it does not apply to transactions that give rise to both deductible and taxable temporary differences to the extent that an entity recognises a deferred tax asset and liability of the same amount in respect of those temporary differences.

IAS 37 Provisions, Contingent Liabilities and Contingent Assets—the meaning of ‘unavoidable costs’, The staff are recommending that no new disclosure requirements be added and that the proposed amendments apply only to contracts existing at the date of initial application. 

IAS 21 The Effects of Changes in Foreign Exchange Rates—foreign exchange restrictions. The staff recommend the Committee not develop an interpretation but publish a tentative agenda decision, discussing the use of an estimated closing rate in those circumstances and the exchange rates at the dates of the transactions, and referring to applicable disclosure requirements.

New issues

There are two new issues, both in relation to IAS 23. The Committee received submissions asking whether:

  • in determining the expenditures on which to apply the capitalisation rate, an entity includes expenditures incurred on the qualifying asset before obtaining the general borrowings in the case that the entity incurs expenditures on the qualifying asset both before and after it incurs borrowing costs on the general borrowings.
  • an entity ceases to capitalise borrowing costs in respect of expenditures incurred in developing land once it begins constructing the building on the land or continues to capitalise borrowing costs in respect of the land development while it constructs the building.

The Staff are recommending that the Committee not add either of these items to its agenda on the grounds that IAS 23 provides an adequate basis for an entity to determine the appropriate accounting.

Advice from the Committee for the IASB

In June 2017, the Board published the Exposure Draft Property, Plant and Equipment––Proceeds before Intended Use (ED). The staff are concerned that the feedback in the comment letters received suggests that there is a risk that in reducing the diversity in the reporting of sale proceeds, the proposed amendments could create new diversity in the costs recognised in profit or loss. The staff are seeking advice from the Committee on how best to proceed on this project.

Other work in progress

There are three continuing topics that are not being discussed at this meeting, plus one new issue that the staff are still analysing.

The full agenda for the meeting and our pre-meeting summaries can be found here. We will update this page for any changes to the agenda and our Deloitte observer notes from the meeting as they become available.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.