The document is intended to support the consistent application of requirements in IFRSs. Therefore, it highlights requirements within IFRS 9 Financial Instruments that are relevant for companies considering how the pandemic affects their accounting for expected credit losses; it does not change, remove nor add to, the requirements of IFRS 9.

Please click to access the document on the IASB website.

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

The seven minute podcast can be accessed through the press release on the IASB website. Our summary of the meeting and the results of the IASB's votes is available here.

Specifically, the podcast discusses the Board’s decisions related to effective date of IFRS 17 and the expiry date of the IFRS 9 temporary exemption in IFRS 4.

The podcast can be accessed through the press release on the IASB website. Our summary of the meeting and the results of the IASB's votes is available here.

On the effective date, which originally was set at 1 January 2021 and which ED/2019/4 proposed to move to 1 January 2022, the staff now recommend that the Board:

• a) defer the effective date of IFRS 17 (incorporating the amendments) to annual reporting periods beginning on or after 1 January 2023; and
• b) extend the fixed expiry date of the temporary exemption from applying IFRS 9 in IFRS 4 to annual reporting periods beginning on or after 1 January 2023.

The staff recommend that the amendment to IFRS 4 — reflecting the extension of the fixed expiry date for the temporary exemption from applying IFRS 9 — is balloted separately from the amendments to IFRS 17 (including consequential amendments to other IFRSs). This will give jurisdictions with an endorsement process the possibility to endorse the temporary exemption independently (and possibly more quickly) and so avoid endorsement after the current temporary exemption has run out (January 2021).

The papers for the meeting also offer an overview of all topics discussed and the Board's tentative decisions (links are to our Deloitte meeting notes taken at the meeting the decision was made).

After its March 2020 meeting, the Board will have completed its planned redeliberations of the feedback on the exposure draft. If the Board gives permission to start the balloting process at this meeting, the staff plan to draft the amendments to IFRS 17 and bring any sweep issues identified during the balloting of the amendments for discussion at a future meeting. The staff expect that the amendments will be issued in the second quarter of 2020, in line with the Board’s plan as stated in the exposure draft.

Please click to access all papers for the meeting on the IASB website. The discussion of the IFRS 17 amendments is currently scheduled for Tuesday 17 March 14.30-15.30 London time.

Below is an analysis of all changes made to the work plan since our last analysis on 21 March 2020. We also note the projects the IASB intends to move forward with in April 2020.

Standard-setting projects

• No changes

Maintenance projects

• Annual improvements — 2018-2020 cycle — Final amendments are now expected in May 2020 (formerly April 2020). The following projects are part of the annual improvements:
  
  • Fees in the ‘10 per cent’ Test for Derecognition of Financial Liabilities (Amendments to IFRS 9)
  • Lease Incentives (Amendment to Illustrative Example 13 accompanying IFRS 16)
  • Subsidiary as a First-time Adopter (Amendment to IFRS 1)
  • Taxation in Fair Value Measurements (Amendment to IAS 41)
• IBOR Reform and its Effects on Financial Reporting — Phase 2 — An exposure draft is still expected in April 2020
• Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) — An IFRS amendment is now expected in May 2020 (formerly Q2 2020)
• Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) — An IFRS amendment is now expected in May 2020 (formerly March 2020)
• Updating a Reference to the Conceptual Framework (Amendments to IFRS 3) — An IFRS amendment is now expected in May 2020 (formerly April 2020)

Research projects

• Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12 — The rescheduled research review is still expected to take place in April 2020

Other projects

• Due Process Handbook Review — Final amendments are still expected in April 2020

The above is a faithful comparison of the IASB work plan at 21 March 2020 and at 27 March 2020. For access to the current IASB work plan at any time, please click here.

On the effective date, which originally was set at 1 January 2021 and which ED/2019/4 proposed to move to 1 January 2022, the Board now decided to:

• a) defer the effective date of IFRS 17 (incorporating the amendments) to annual reporting periods beginning on or after 1 January 2023; and
• b) extend the fixed expiry date of the temporary exemption from applying IFRS 9 in IFRS 4 to annual reporting periods beginning on or after 1 January 2023.

Although, several Board members expressed doubt or concerns, the final vote on a) was 12 in favour, 1 against, 1 absent (the one absent Board member had lost connection but later stated that he would also have voted in favour). On question b) the final vote was 12 in favour, 2 against.

The Board then proceeded to discuss questions around the balloting process. All Board members agreed that there is no need to re-expose the amendments to IFRS 17, no Board member intends to dissent from the issuance of the final amendments, and all Board members gave permission to start the balloting process. 

The staff will therefore begin to draft the amendments to IFRS 17 and bring any sweep issues identified during the balloting of the amendments for discussion at a future meeting. The staff expect that the amendments will be issued in the second quarter of 2020, in line with the Board’s plan as stated in the exposure draft.

The IASB has published a press release announcing the deferral.

The guide, which is primarily directed at those preparing accounts under FRS 102, covers:

• going concern;
• reflecting conditions which existed at the balance sheet date;
• non-adjusting post balance sheet events;
• the Directors' Report and/or Strategic report;
• 2020 year ends;
• post balance sheet review period; and
• considerations for micro entities.

A press release and the guide is available on the ICAEW website.  The ICAEW has also published from its Financial Reporting Faculty:

• a guide for IFRS reporters available on the ICAEW website here.
• a checklist for FRS 102 reporters available on the ICAEW website here.
• a checklist for FRS 105 reporters available on the ICAEW website here. 
• a guide, primarily aimed at FRS 102 reporters, to help them distinguish between adjusting and non-adjusting post balance sheet events in light of COVID-19.  It is available on the ICAEW website here.
• guidance on going concern for FRS 102 reporters available here.
• guidance on reverse stress testing available here.

The IFRS Foundation is currently reviewing how to deliver an alternative conference combined with the World Standard-Setters meeting in September 2020.

The announcement is available on the IASB website.

Dr Freiberg, Head of BDO Germany’s Accounting Advisory and Technical Accounting Groups, is a former member of the IFRS Advisory Council and was a member of the IFRS Committee of the German standard-setter DRSC. He is also a member of the TRG for IFRS 17.

The appointment, effective immediately, is until 30 June 2022.

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