September 2023 IASB meeting notes posted

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27 Sep, 2023

The IASB met in London from 19-21 September 2023. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed:

Work plan: The IASB received an update on its work plan. No decisions were made.

Rate-regulated Activities: The IASB redeliberated the proposals in the Exposure Draft Regulatory Assets and Regulatory Liabilities and made decisions on credit and other risks and the direct (no direct) relationship concept.

Equity Method: The IASB made decisions on the implications of applying its tentative decisions (for investments in associates) to investments in subsidiaries in separate financial statements, and joint ventures. The IASB also decided to propose amendments to improve the disclosure requirements for investments in associates but decided to retain the project’s scope.

Climate-related Risks in Financial Statements: The IASB decided that the objective of the project is to explore whether and, if so, how targeted actions could improve the reporting of financial information about climate-related and other uncertainties in the financial statements. The IASB also decided on the proposed potential actions to help address concerns about reporting the effects of climate-related risks in the financial statements.

Amendments to the Classification and Measurement of Financial Instruments: The IASB discussed the feedback received in response to the Exposure Draft. No decisions were made.

Business Combinations—Disclosures, Goodwill and Impairment: The IASB received a summary of tentative decisions made to date and made decisions about the remaining technical aspects of this project. The IASB also gave permission to ballot an Exposure Draft.

Extractive Activities: The IASB decided not to develop requirements or guidance on the information an entity discloses about its exploration and evaluation expenditure and activities. However, the IASB agreed to remove the temporary nature of the exemption in IFRS 6.

Business Combinations under Common Control: The IASB discussed the project direction and the measurement method to apply to a business combination under common control. No decisions were made.

Second Comprehensive Review of the IFRS for SMEs Standard: The IASB discussed overarching topics, which will assist the IASB in its redeliberations of the proposals in Exposure Draft Third edition of the IFRS for SMEs Accounting Standard. The IASB also discussed specific proposals in the ED with regard to revenue and impairment of financial assets. On impairment, the IASB decided that the problem it addressed in introducing the ECL model in IFRS 9 does not meet its principle of relevance to SMEs because the population of entities eligible to apply the IFRS for SMEs Accounting Standard that have significant exposure to credit risk is expected to be small.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures: The IASB decided to propose amending the new Standard to require an eligible subsidiary to disclose the strategic rationale for undertaking a business combination and whether the discount rate used in calculating value in use is pre-tax or post-tax. In addition, the IASB decided to ensure the wording of the disclosure requirement in the new Standard in relation to IFRS 3:B64(i) aligns with the proposals made by the IASB in the project on Business Combinations—Disclosures, Goodwill and Impairment and to amend the new Standard to require an eligible subsidiary to disclose information about the contribution of the acquired business.

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

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