Pre-meeting summaries for the September IASB meeting

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18 Sep, 2019

The IASB will meet in London on 24–26 September 2019 to discuss 15 topics. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. For each topic to be discussed, we summarise the agenda papers made available by the IASB staff and point out the main issues to be discussed by the IASB and the staff recommendations.

Onerous Contracts: After considering the comment letters received, the staff recommend that the Board finalise its amendments to IAS 37, to clarify that it is the costs that relate directly to the contract which are included in determining the ‘cost of fulfilling’ a contract for the purpose of assessing whether the contract is onerous.

Classification of Liabilities as Current or Non-current (Amendments to IAS 1): The staff recommend that the Board prepare the final amendments to IAS 1, with an effective date of 1 January 2022.

Business Combinations under Common Control: The staff recommend that the forthcoming Discussion Paper propose that an acquiring entity be required to account for a business combination under common control by applying either a current value approach based on the acquisition method or a predecessor approach. The current value approach would be required for transactions affecting non-controlling shareholders of the acquirer, with two exceptions, and the predecessor approach would apply for all other transactions.

Rate-regulated Activities: The Board will discuss the regulatory agreement boundary, whether any additional amendments to other IFRS Standards are necessary and the proposed transition requirements. 

Management Commentary: The staff recommend that the revised Practice Statement discuss faithful representation using three qualities of information—completeness, neutrality and freedom from error.

Disclosure Initiative: The Board is using IFRS 13 as one of the Standards to test the draft guidance on developing and drafting disclosure objectives and requirements and will discuss how the disclosure requirements could be improved.

Primary Financial Statements: The staff are recommending that the ED propose replacing IAS 1 with a new IFRS, rather than amending it, with fewer illustrative examples than previously envisaged.

SME standard review and update: The discussions will focus on the scope of the IFRS for SMEs Standard, IAS 19, IAS 23, IFRS 11, accounting for cryptocurrencies and accounting for financial guarantee contracts of the IFRS for SMEs Standard.

Extractive Activities: The staff will provide an overview of how changes to IFRS Standards and other documents, and other developments since the DP was published may affect the issues and conclusions in the DP. There are no staff recommendations.

Financial Instruments with Characteristics of Equity: After considering the feedback on the Discussion Paper the staff recommend that the Board develop amendments to IAS 32 to address practice, clarifying the underlying principles in IAS 32.

The Board will be given updates on the 2020 Agenda Consultation (the approach being proposed to developing the Request for Information), the planned Post-implementation review of IFRS 10, 11 and 12, the second phase of the project on IBOR Reform and the Effects on Financial Reporting, Subsidiaries that are SMEs and the Research Programme.

More information

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

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