The topics covered during the meeting were the following (numbers in brackets are ref­er­ences to the cor­re­spond­ing para­graphs of the summary):

• Rate-regulated activities (1–9): The ASAF members outlined their plans for outreach on an upcoming Exposure Draft on regulatory assets and regulatory liabilities.
• Cryptoassets (10–18): The ASAF members provided their preliminary views on the EFRAG’s discussion paper Accounting for Crypto-assets (Liabilities) and whether they support changes to IFRS requirements.
• Financial instruments with characteristics of equity (19–42): The ASAF members provided feedback on potential refinements to the disclosure requirements discussed in Discussion Paper Financial Instruments with Characteristics of Equity. The session included discussions on the priority of financial instruments on liquidation of an equity, disclosure on an individual entity versus consolidated basis, non-financial liabilities, legal effects, carrying amounts versus fair value, potential dilution of ordinary shares, and terms and conditions of financial instruments.
• Dynamic Risk Management (43): The staff provided the ASAF members with an update on outreach on core dynamic risk management model.
• Lack of Exchangeability (Amendments to IAS 21) (44–45): The ASAF members were updated on the developments on the project and were introduced to the upcoming Exposure Draft on narrow-scope amendments to IAS 21 The Effect of Changes in Foreign Exchange Rates.
• Update and agenda planning (46–48): The ASAF members discussed the Board’s current work plan and planned topics for the March 2021 ASAF meeting.

A full summary of the meeting is available on the IASB's website.

Local authorities in the United Kingdom are required to keep their accounts in accordance with 'proper practices'. This includes compliance with the terms of the Code of Practice on Local Authority Accounting in the United Kingdom (the Code) prepared by the CIPFA LASAAC Local Authority Accounting Code Board (CIPFA LASAAC).

The first area for consultation relates to the accounting for the secure tenancy for tenants within local authorities in the context of both IAS 17 Leases and IFRS 16 Leases. The consultation considers:

• Whether the leasing standards apply to housing revenue account tenancy agreements (i.e. whether they meet the definition of a lease (under both IAS 17 and IFRS 16).
• If the leasing standards do apply, whether they are operating or finance leases.
• What disclosure requirements will be needed by the users of local authority financial information relating to housing tenancies and the related assets.

CIPFA/LASAAC are of the view that secure housing tenancies do not meet the definition of a lease under IAS 17 and therefore do not propose a change to the 2020/21 or 2021/22 Codes. However they have concluded that secure housing tenancies do meet the definition of a lease under IFRS 16. As CIPFA/LASAAC has taken the decision to delay the implementation of IFRS 16 to 1 April 2022, the proposed amendments to the Code therefore mainly focus on changes to the 2022/23 Code. However, consideration has also been made as to whether secure housing tenancies meet the definition of a lease under IFRS 17 to ensure that the accounting prior to the implementation of IFRS 16 is correct.

As CIPFA LASAAC has decided to defer the implementation of IFRS 16 to 1 April 2022, it is also keen to understand whether it would be useful to local authority stakeholders if provisions were included in the Code to provide guidance on the accounting treatment for COVID-19-related rent concessions. UK GAAP under FRS 102 Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime already provides such guidance and so the proposed amendments to the 2021/22 Code (and possibly as an update to the 2020/21 Code) cross refer to this treatment. This might be useful to local authorities with subsidiaries that apply FRS 102 and that have received such rent concessions.

Comments are requested by 12 March 2021.

A press release, the Invitation to comment and copies of the exposure drafts are available on the CIPFA website.

The IIRC launched the revision process in February 2020 and identified three key themes of the revision: a) business model considerations, b) responsibility for an integrated report, and c) charting a path forward. The third theme was not directly related to the revision but focused on future of corporate reporting, including extended assurance and the role of technology, and was intended to inform the IIRC’s longer-term strategy.

The revisions published today focus on a simplification of the required statement of responsibility for the integrated report; improved insight into the quality and integrity of the underlying reporting process; a clearer distinction between outputs and outcomes; and a greater emphasis on the balanced reporting of outcomes and value preservation and erosion scenarios. The press release states:

As business resilience is tested so severely in the wake of the global pandemic, climate change and growing inequality, effective integrated thinking and reporting is more important than ever. We believe these revisions can help businesses deliver more robust, balanced reporting. The revisions are also aligned with our efforts to develop a global, comprehensive corporate reporting system.

Please click to access the following information on the IIRC website:

• Press release
• Revised International <IR> Framework
• Consultation draft feedback
• Analysis of consultation draft feedback
• Treatment of consultation draft feedback
• 2013/2021 comparison document which allows a comparison of changes that have been made to the 2021 <IR> Framework to be seen.  Changes have been outlined in a table format on a side-by-side basis for ease of comparison.

In addition, the South African Integrated Reporting Committee (IRC) has published a version of the International <IR> Framework (2021) with marked up changes. Please click to access the document on the IRC website. 

The webinar will be held on 27 January 2021.  For the convenience of stakeholders in different time zones, there will be two sessions of the webinar:

• 09:00-10:00 GMT
• 15:00-16:00 GMT

To register for the webcast or for more information, please see the press release on the IASB's website.

Exposure Draft 75 Leases proposes a model that is aligned with IFRS 16 Leases for lease accounting in the public sector. For lessees, ED 75 proposes a right-of-use model that will replace the risks and rewards incidental to ownership model in IPSAS 13 Leases. For lessors, ED 75 proposes to substantially carry forward the risks and rewards incidental to ownership model in IPSAS 13.

The request for information published alongside ED 75 will provide the IPSASB with further information on the issues that need to be considered in accounting for concessionary leases and other arrangements similar to leases that are quite common in the public sector.

Comments on both documents are requested by 17 May 2021.

Please click to access the following additional information on the IPSASB website:

• Press release
• Access to the exposure draft, a short video and an At a Glance introduction
• Access to the request for information

The Discussion paper introduces possible improvements to the information companies report about acquisitions of businesses to help investors assess how successful those acquisitions have been. The Discussion Paper also seeks feedback on how companies should account for goodwill arising from such transactions.

In its draft comment letter the UK Endorsement Board’s secretariat:

• Proposes a mixed model for accounting for goodwill, in which an annual amortisation charge is supported by indicator-based impairment testing.
• Suggests possible methods for establishing the useful life of goodwill in the amortisation calculation.
• Supports moving to an indicator-only impairment model for goodwill only if amortisation is reintroduced.
• Seeks further stakeholder input on anticipated cost savings of moving to an indicator-only impairment test for goodwill.
• Supports the IASB’s proposed simplifications to the impairment test and makes additional recommendations to reduce risks of shielding and management optimism.
• Supports the principle of improved disclosures on acquisitions but recommends the IASB undertake illustrative examples and field-testing.

Comments on the draft comment letter are requested by 25 January 2021. For more information, see the press release on the UKEB's website.

The IASB will discuss the following:

• Work plan update
• Maintenance and consistent application
• Disclosure initiative — Subsidiaries that are SMEs
• Primary financial statements

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.

Deloitte has developed its high quality e-learning modules to help users develop their knowledge and application of the basic principles and concepts of IFRSs and IASs. Our e-learning on IFRS has been a leading educational and training resource on IFRS since it was initially released in 2004, with a range of corporate, educational and professional organisations using the content as their primary tool for IFRS education.

Please click to access our redesigned and enhanced e-learning platform here. Of course you can also continue to access the individual modules through our IAS Plus e-learning page.

IAS 1 requires management to make an assessment of an entity's ability to continue as a going concern. If management has significant concerns about the entity's ability to continue as a going concern, the uncertainties must be disclosed. In the current stressed economic environment arising from the covid-19 pandemic, deciding whether the financial statements should be prepared on a going concern basis may involve a greater degree of judgement than usual.

For more information, see Deloitte's Need to know newsletter as well as the press release on the IASB’s website.

Xianzhong Li will represent the Chinese Ministry of Finance on the Council.

A press release announcing his appointment is available on the IASB website.