The 8-minute podcast features discussions of the following topics in more detail:

• IFRS 17 Insurance Contracts
• Proposed amendments to IAS 12
• Meeting of the IFRS Foundation Trustees in Kuala Lumpur

The podcast can be accessed through the press release on the IASB website. More information on the topics discussed is available through our comprehensive notes taken by Deloitte observers at the January IASB meeting.

In his speech, Mr Liikanen noted that voices from across the Asia-Oceania region are well represented at all levels of the IFRS Foundation and the various advisory bodies. As an example of valuable contributions from the region, Mr Liikanen cited the MASB’s work on how to value specific biological assets that led to amendments to IAS 16 and IAS 41.

Turning to future challenges for the IFRS Foundation, Mr Liikanen made out three key priorities:

• The Foundation needs to consolidate and build upon the achievements of recent years. He warned against movements away from global achievements and in this context mentioned the recent European Commission's Fitness Check (which, however, showed that a large majority of respondents were against an EU set of standards).
• The Foundation also needs to ensure that IFRSs remain relevant in a changing world. In this context, Mr Liikanen noted that investors are not only interested in the pure financial statements anymore but also want to know about non-financial information.
• And finally the Foundation is faced with the question of remaining relevant in a digital world. Mr Liikanen notes that the Foundation will continue to explore how technological developments affect the way financial information is consumed and how technology-related innovations affect the standard-setting process.

Please click to access the full transcript of the speech on the IASB website. A recording of the speech is available through the press release on the MASB website.

Mr Kabureck began by discussing how the December 2014 amendments to IAS 1 marked the ‘first foray into addressing disclosure materiality’. He stated IFRS disclosure requirements used phrases, such as ‘At a minimum an entity shall disclose . . .’, which were interpreted in practice in a way that was not intended by the IASB and actions were taken to clarify that materiality concept always overrules these certain phrases.

Next, he discussed key messages in the September 2017 IFRS Practice Statement Making Materiality Judgements, which provides an outline for making materiality judgements and assessing their implications. He noted that the Practice Statement helps preparers define who the target audience for a company’s financial reporting is and what information is needed. Also, the Practice Statement makes it clear that ‘materiality is assessed in the context of the financial statement taken as a whole…’.

Further, Mr Kabureck commented on the revised definition of ‘material’ issued in October 2018. The amendments conformed the definition of material among various IFRS Standards. He mentioned that the revision to the definition from ‘could influence’ to ‘could reasonably be expected to influence’ provided a more accurate representation of the Board’s intention.

Lastly, he expressed the need to analyse how Standards are drafted and how to amend certain Standards with known issues.

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

The agenda is summarised below:

Agenda papers for this meeting are available on the IASB website.

The following agenda papers around IFRS 17 will be discussed (links to IASB website):

• AP2A: Loans that transfer significant insurance risk
• AP2B: Transition — Optionality and comparative information
• AP2C: Transition — Risk mitigation option and amounts accumulated in other comprehensive income on transition
• AP2D: Transition — Modified retrospective approach

The discussion on IFRS 17 is presently scheduled for 7 February, 14:45-16:45 (UK time).

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.

The FRC's Chief Executive, Stephen Haddrill, will open the event with a recap of the FRC's work over the last year, followed by discussion of the Kingman review, the impact of Brexit and FRC governance. 

The agenda and registration details for the meeting are available on the FRC website.

Below is an analysis of all changes that were made to the work plan since our last analysis on 17 December 2018.

Standard-setting projects

• No changes.

Maintenance projects

• Accounting Policies and Accounting Estimates — The IASB will decide on the project direction in April 2019 (formerly Q2 2019).
• Amendments to IFRS 17 Insurance Contracts — An exposure draft is expected in Q2 2019 (formerly H1 2019).
• Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction — An Exposure Draft is expected in Q2 2019 (formerly H1 2019).
• Fees in the ‘10 per cent’ Test for Derecognition — An exposure draft is expected in Q2 2019 (formerly H1 2019).
• IBOR Reform and its Effects on Financial Reporting — Formerly listed as a research project, an exposure draft is expected in Q2 2019 (formerly H1 2019). — NB This update actually reflects a December 2018 decision of the Board.
• Lease Incentives — An exposure draft is expected in Q2 2019 (formerly H1 2019).
• Onerous Contracts — Cost of Fulfilling a Contract — Exposure draft feedback is expected in Q2 2019 (formerly H1 2019).
• Subsidiary as a First-time Adopter — An exposure draft is expected in Q2 2019 (formerly H1 2019).
• Taxation in Fair Value Measurements — An exposure draft is expected in Q2 2019 (formerly H1 2019). 
• Updating a Reference to the Conceptual Framework — An exposure draft is expected in Q2 2019 (formerly H1 2019). 

Research projects

• Business Combinations under Common Control — A discussion paper is expected in H1 2020 (formerly just listed as 2020).
• Goodwill and Impairment — The next milestone was changed to a discussion paper, instead of the previously-listed "discussion paper or exposure draft."
• Disclosure Initiative — Principles of Disclosure — A project summary is expected in March 2019 (formerly listed as Q1 2019).
• Financial Instruments with Characteristics of Equity — Discussion paper feedback is expected in March 2019 (formerly Q1 2019).
• Provisions — New project added to the work plan; the IASB plans to review research in the second half of 2019. — NB This update actually reflects a December 2018 decision of the Board.

Other projects

• IFRS Taxonomy Update — 2018 General Improvements — A date of February 2019 was added for the proposed update feedback.
• IFRS Taxonomy Update — Common Practice (IFRS 13) — The next milestone was changed from "analyse feedback" to "final update" with an expected date of March 2019. — NB This update seems somewhat premature since the feedback received will not by anlysed by the ITCG until its 31 January meeting.
• Revisions to the Preface to IFRS Standards — Project removed from the work plan. — NB This changed entry actually reflects an October 2018 decision of the Board.

The above is a faithful comparison of the IASB work plan at 17 December 2018 and at 25 January 2019. For access to the current IASB work plan at any time, please click here.

EFRAG ​welcomes the IASB’s efforts to clarify the requirements in IAS 37 regarding the assessment of whether, in a contract, the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. However, EFRAG notes that the proposed amendments would affect the onerous assess​ment not only for long-term construction contracts previously in the scope of IAS 11 but for all contracts in the scope of IAS 37. Consequently, EFRAG encourages the IASB to further assess the expected impact of the proposals.

Comments on EFRAG's draft comment letter are requested by 5 April 2019. For more information, see the press release and the draft comment letter on the EFRAG website.

The Board continued to assess concerns and implementation challenges raised by stakeholders about the requirements in IFRS 17 Insurance Contracts. At this meeting the Board considered four issues: insurance acquisition cash flows for renewals outside the contract boundary; reinsurance contracts held—onerous underlying insurance contracts; reinsurance contracts held—underlying insurance contracts with direct participation features; and recognition of the contractual service margin in profit or loss in the general model. In all cases the Board decided to propose amendments to IFRS 17.  

The Board decided to proceed with the publication of an Exposure Draft to amend IAS 12 Income Taxes, in relation to the deferred tax on assets and liabilities arising from a single transaction. 

The staff also gave oral updates on the projects on Rate-regulated Activities and Extractive Activities.

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