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June 2020 IASB meeting notes posted

  • IASB meeting (blue) Image

30 Jun 2020

The IASB met via video conference on 23–25 June 2020 to discuss six topics. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

IBOR Reform and the Effects of Financial Reporting: The IASB discussed feedback on the Exposure Draft (ED) Interest Rate Benchmark Reform—Phase 2 (Proposed Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16), published in April 2020. The IASB supported all of the staff recommendations. The proposals on accounting for qualifying hedging relationships and groups of items will be discussed in July 2020, when the staff also expect to ask the IASB to finalise the proposals.

Classification of Liabilities as Current or Non-current—Deferral of Effective Date of Amendments to IAS 1: The IASB decided to finalise its proposal to defer the effective date of the amendments by one year to annual reporting periods beginning on or after 1 January 2023.

Disclosure Initiative: Accounting Policies: The Board decided to apply the concept of materiality to all types of accounting policy information, including accounting policy information that is standardised information or information that duplicates or summarises the requirements of a Standard.

Disclosure Initiative: Targeted Standards-level Review of Disclosures: The Board decided to begin the balloting process on Exposure Draft (ED) Targeted Standards-level Review of Disclosures—Amendments to IAS 19 and IFRS 13. It will have a comment period of 180 days (longer than the normal minimum of 120 days because the proposals could have significant consequences).

Extractive Activities: In September 2019, the IASB asked the staff to assess what problems, if any, entities with extractive activities have when applying IFRS requirements and whether the primary users of their financial statements are getting all the information they need. At this meeting the staff reported the results of their research, which indicated mixed views. The main Board comments focused on challenges in setting the scope of the project and low levels of engagement with users. No decisions were made.

Maintenance and Consistent Application

Sale of a Subsidiary to a Customer. In October 2019, the Board discussed the accounting for transactions that involve the sale of a subsidiary to a customer when that subsidiary holds a single asset and whether IFRS 10 or IFRS 15 should apply. The Board rejected the staff recommendation to amend IFRS 10 to place such transactions within the scope of IFRS 15.

Accounting Policy Changes (proposed amendments to IAS 8 in relation to agenda decisions). In December 2019, the Trustees amended the Due Process Handbook to clarify that the explanatory material in an agenda decision derives its authority from the Standards and accordingly, entities are required to apply the applicable Standards, reflecting the explanatory material in an agenda decision. ED/2018/1 Accounting Policy Changes proposed amending IAS 8 to simplify the application of accounting policy changes that result from an agenda decision. The Board decided not to proceed with the proposed amendments and to do no further work on the project.

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

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