The following topics were discussed:
Management Commentary
The IASB continued discussing feedback on its proposals for a revised Practice Statement on management commentary, as set out in the ED/2021/6 Management Commentary. The IASB was not asked to make any decisions.
Primary Financial Statements
The IASB continued discussing the proposal in ED/2019/7 General Presentation and Disclosures that would require an entity that presents an analysis of operating expenses by function in the statement of profit or loss to disclose, in a single note, an analysis of its total operating expenses by nature. The IASB is considering a partial matrix approach and is asking for feedback on the proposed scope for future papers on the topic. The staff did not make any recommendations or ask the IASB to make any decisions.
Third Agenda Consultation
The IASB decided to add a maintenance and consistent application project on climate-related risks and research pipeline projects on intangible assets and statement of cash flows and related matters. It also decided to create a reserve list of projects: operating segments and pollutant pricing mechanisms and not add to its work plan projects on cryptocurrencies and related transactions or going concern disclosures.
Maintenance and consistent application
At its March 2022 meeting, the IFRS Interpretations Committee decided to finalise an agenda decision in response to a submission about demand deposits with restrictions on use. No IASB members objected to the agenda decision.
Post-implementation Review of IFRS 9
The IASB discussed feedback on assessing a financial asset’s contractual cash flow characteristics. Most respondents shared the view that generally the contractual cash flow characteristics assessment works as intended. The staff will continue its outreach on application issues. They are considering whether to develop application guidance with respect to the characteristics of a basic lending arrangement and its link to amortised cost measurement; clarifying how to assess whether variability arising from contractual terms that change the timing or amount of contractual cash flows are consistent with SPPI; and considering how the disclosure objectives and principles in IFRS 7 would apply to financial assets with ESG-linked features, including information about an entity’s exposure to risks arising from such features and how an entity manages such risks.
Second Comprehensive Review of the IFRS for SMEs Accounting Standard
At its March 2022 meeting, the IASB decided on an approach to develop proposed amendments to the disclosure requirements in the IFRS for SMEs Accounting Standard that would result in consistency between these disclosure requirements and ED/2021/7 Subsidiaries without Public Accountability: Disclosures. At this meeting the IASB decided on exceptions to that approach.
Goodwill and Impairment
The staff have performed further research on the practical concerns raised by stakeholders on the IASB’s preliminary views to require entities to disclose information about the subsequent performance of business combinations and quantitative information about synergies expected from business combinations. The purpose of this meeting was to provide the IASB with a summary of the staff research. The agenda paper also provided information about the project plan and how this research is relevant to that plan. The IASB was not asked to make any decisions during this session.
Equity Method
In October 2020, the IASB discussed and decided on the objective and approach of the Equity Method project. The IASB last discussed the Equity Method project in October 2021. At this meeting, the IASB discussed purchases of an additional interest in an associate without a change in significant influence. The IASB will consider remeasuring existing holdings at fair value to give a new deemed cost or a simple cost accumulation approach. IASB members expressed a preference for the latter. The IASB also discussed a summary of the research findings on changes made to IFRS Accounting Standards arising from the Conceptual Framework, Business Combinations and Joint Arrangements project.
Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures
The IASB published ED/2021/7 Subsidiaries without Public Accountability: Disclosures in July 2021, setting out proposed reduced disclosure requirements. The IASB discussed the feedback from comment letters and outreach events on the ED. While most respondents agreed with the objective of the draft Standard, there were mixed views on the proposed scope and whether the IASB should have started with IFRS Accounting Standards rather than the IFRS for SME Accounting Standard. Some issues were also raised about endorsement mechanisms. The IASB was not asked to make any decisions.
Please click to access the detailed notes taken by Deloitte observers for the entire meeting.