The Q&A addresses key questions such as:

• Is there any existing IPSASB literature relevant to consider for climate change reporting?
• When governments or public sector entities have strategies and programs in place to manage climate change risks, how should these be treated?
• When governments or public sector entities adopt the UN’s Sustainable Development Goals (SDGs), what IPSAS financial reporting guidance should be considered?

The guidance can be accessed through the press release on the IPSASB website.

The third article Opportunities for Enhancing the Goodwill Impairment Framework can be accessed on the IVSC website.

The second article What is the Information Value of the Current Impairment Framework? was published in December 2019.

The first article Is Goodwill a Wasting Asset? was published in September 2019.

The Board will discuss the following:

• Maintenance and consistent application
• Disclosure initiative — Accounting policies
• Disclosure initiative — Targeted standards-level review of disclosures
• Classification of liabilities as current or non-current
• Extractive activities
• IBOR reform and the effects on financial reporting — Phase 2

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.

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.

The Committee will discuss the following:

• Administrative matters
• Supply Chain Financing — Reverse Factoring
• IFRS 16 — Sale and leaseback with variable payments
• IAS 12 — Deferred tax related to an investment in a subsidiary
• IAS 38 — Player transfer payments
• Work in progress

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 AIM Rules for Companies require a half-yearly financial report to be published within three months from the end of the period to which it relates.  The announcement by the London Stock Exchange will permit such companies that need extra time to prepare their half-yearly report an additional one month.  The London Stock Exchange has indicated that the temporary extension will be kept under review and, at a suitable time, will announce how the policy will be removed in a fair, orderly and transparent way.

AIM companies that wish to utilise the aditional month must notify via an RIS its intention to do so prior to the company's reporting deadline under AIM Rule 18 and the company's nominated advisor must separately inform the AIM Regulation.

A press release is available on the London Stock Exchange website.

The group’s membership includes:

• Charles Mario Abela, not-for-profit organisation (Malta)
• Maria Alexiou, preparer (Greece)
• Estelle Aymard-Young, financial institution (France)
• Emilie Beral, user (France)
• Donato Calace, digital tools (Italy)
• Daniela Cholakova, preparer (Bulgaria)
• Jean-Philippe Desmartin, user (France)
• Laura Girella, not-for-profit organisation/ academia (Italy)
• Michael Goebbels, preparer (Germany)
• Ulrika Hasselgren, user (Denmark)
• Christian Hell, accountancy profession (Germany)
• Marcus Looijenga, accountancy profession (Netherlands)
• Gloria Mazzocco, preparer (Italy)
• Giuseppe Milici, accountancy profession (Italy)
• Tegwen Le Berthe, user (France)
• Isabel Gavín Pérez, financial institution (Spain)
• Eckhard Plinke, user (Germany)
• Gunnar Rimmel, academia (Sweden)
• Dawn Slevin, other stakeholder (Ireland)
• Mirjam Wolfrum, not-for-profit organisation (Germany)

For more information, see the press release on the EFRAG website.

Update: On 27 July 2020, EFRAG announced that Charles Mario Abela and Dawn Slevin will be co-Chairs of the task force.

Previous guidance was provided in March 2020 containing, amongst other things, the approach that should be taken by banks, building societies and PRA-designated investment firms in assessing expected loss provisions under IFRS 9 Financial Instruments.  The aim of the guidance was to ensure that the requirements of IFRS 9 were applied in a consistent way and avoid the risk that they approach the standard differently potentially leading to inappropriate or inconsistent levels of expected credit losses.

The March guidance related to payment holidays, moratoria or deferrals.  As the first payment deferrals are now coming to an end, the FCA has published updated guidance (link to FCA website) on how lenders should treat the payment deferrals at the end of the initial deferral period.  The guidance issued by the PRA is intended as an update to the March guidance to address the accounting consequences of exits from initial payment deferrals. 

Click here for the guidance on the PRA website.  Further updated guidance is available on the PRA website here.

Supply Chain Financing Arrangements — Reverse Factoring: In its April 2020 meeting, the staff presented the research performed on supply chain financing ("SCF") arrangements submitted. The staff recommend that the Committee:

• publish a tentative agenda decision outlining how IFRS applies to different aspects of accounting for them; and
• develop new disclosure requirements for arrangements entered in to fund payables to suppliers.

IFRS 16 Leases — Sale and Leaseback with Variable Payments: In March 2020, the Committee published a tentative agenda decision stating that for a sale and leaseback transaction with variable payments the seller-lessee recognises a lease liability at the date of the transaction, even if all the payments for the lease are variable and do not depend on an index or rate, reflecting how the right-of-use asset is measured to determine the gain or loss on the sale and leaseback transaction. The staff recommend that the Committee finalise the tentative agenda decision, but to refer to the liability as a financial liability rather than a lease liability.

IAS 12 Income Taxes — Deferred Tax Related to an Investment in Subsidiary: In March 2020, the Committee published a tentative agenda decision that when an entity expects to recover the carrying amount of its investment in the subsidiary through distributions of profits by the subsidiary, the entity uses the distributed tax rate to measure the deferred tax liability related to its investment in the subsidiary. The staff recommend that the Committee finalise the tentative agenda decision with minor editorial changes.

IAS 38 Intangible Assets — Player Transfer Payments: In November 2019, the Committee published a tentative agenda decision stating that when a football club transfers a player to another club it recognises the gain or loss in profit or loss applying IAS 38, and not revenue (IFRS 15). However, the agenda decision suggested that the intangible asset could be classified as inventory (IAS 2) if it was is acquired for development and sale in the ordinary course of business. The staff recommend finalising the agenda decision, but with all references to IAS 2 removed.

Work in progress: The staff are analysing requests related to the hedge of variability in cash flows in real terms and sale and leaseback in a corporate wrapper.

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

Disclosure Initiative: Accounting Policies: The Board will continue to discuss disclosures that simply duplicate the requirements of a Standard. The staff continue to recommend that the Board 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 will decide whether the staff can begin the balloting process on Exposure Draft (ED) Targeted Standards-level Review of Disclosures—Amendments to IAS 19 and IFRS 13. The staff recommend proceeding with 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 applying IFRS requirements and whether the primary users of their financial statements are getting all the information they need.  At this meeting the staff report the results of their research, which indicated mixed views. The Board is not asked to make any decisions in this session. Board members are invited to ask questions and to comment on the feedback.

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 staff conclude that if the inventory that is an output of its ordinary activities, but that inventory (and any related income tax asset or liability) are sold in a corporate wrapper IFRS 15 should apply. The entity cannot retain any interest in the inventory transferred to the customer.
• 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 staff recommend that the Board not proceed with the proposed amendments and do no further work on the project.

IBOR: The IASB will discuss 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 staff provide recommendations on all topics except for the proposals on accounting for qualifying hedging relationships and groups of items. That topic will be discussed in July 2020, when the staff also expect to ask the IASB to finalise the proposals.

More information

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