The Amendments introduce a temporary mandatory exception from accounting for deferred taxes arising from the Pillar Two model rules and a requirement to disclose that the exception has been applied, both of which are applicable immediately and retrospectively. They also introduce further targeted disclosure requirements, effective for annual reporting periods beginning on or after 1 January 2023. An entity is not required to make these disclosures for any interim period ending on or before 31 December 2023.

The Endorsement Criteria Assessment and Adoption Statement are available on the UKEB website.

The UKEB has also updated its adoption statement report which is available on its website here.

Classification of Liabilities as Current or Non-current (Amendments to IAS 1) provides a more general approach to the classification of liabilities under IAS 1 Presentation of Financial Statements based on the contractual arrangements in place at the reporting date.

Non-current Liabilities with Covenants (Amendments to IAS 1) clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. 

Both amendments are effective for accounting periods beginning on or after 1 January 2024 with earlier application permitted.

The Endorsement Criteria Assessment and Adoption Statement are available on the UKEB website.

The UKEB has also updated its adoption statement report which is available on its website here.

The UKEB welcomes the opportunity to provide comments on the IASB’s Request for Information.

The draft comment letter considers that IFRS 15 has achieved its objective and is working well, though some operational challenges remain. It also highlights some areas where improvement, including potential standard setting activity, is required, without causing significant cost and disruption to entities already applying the standard.

Comments on the draft comment letter are requested by 5 October 2023.

In addition, the UKEB is to hold roundtables for preparers to understand UK preparers' views on the implementation of IFRS 15. It will also be conducting short one-to-one interviews to understand UK investor /user views on company reporting of their revenue.

The press release, the draft comment letter and the invitation to comment are available on the UKEB website.

The amendments add disclosure requirements and ‘signposts’ within existing disclosure requirements, that would ask entities to provide qualitative and quantitative information about supplier finance arrangements.

The UKEB's draft assessment tentatively concludes that:

• the amendments meet the criteria of relevance, reliability, comparability and understandability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by SI 2019/685 (see Regulation 7(1)(c)); and  
• application of the amendments is not contrary to the principle that an entity’s accounts must give a true and fair view as required by SI 2019/685 (see Regulation 7(1)(a)).

Additionally the UKEB tentatively concludes that the amendments are likely to be conducive to the long-term public good in the UK.

Comments on the draft Endorsement Criteria Assessment are requested by 18 October 2023.

For more information, see the Invitation to Comment and draft Endorsement Criteria Assessment on the UKEB's website.

ED/2023/2 was published by the IASB in March 2023.

In the final comment letter, the UKEB welcomes the ED, noting that it addresses most of the concerns that it raised in its response to the IASB's request for information on the Post implementation Review of IFRS 9: Classification and Measurement.

Whilst supporting the ED, the final comment letter sets out a number of areas of potential improvement to the proposals which have been identified from analysis and outreach with stakeholders.

The final comment letter and the feedback statement are available on the UKEB website.

Below is an analysis of all changes made to the work plan since our last analysis on 27 June 2023.

Stan­dard-set­ting projects

• Amendments to climate-related SASB Standards — This project has been removed from the work plan since the final amendments were included when IFRS S2 was issued.
• Equity method — An exposure draft is now expected in H2 2024 (pre­vi­ously 2024).
• International applicability of the SASB standards — Feedback on the exposure draft will now be discussed in September 2023 (previously Q3 2023).
• Management commentary — A decision on the project’s direction is expected in Q4 2023 (previously H2 2023).

Main­te­nance projects

• Amend­ments to the classification and measurement of financial instruments — Feedback on the exposure draft is now expected to be discussed in September 2023 (pre­vi­ously Q3 2023).
• Annual Improvements to IFRS Accounting Standards — Exposure drafts for the following are now expected in September 2023 (previously Q3 2023):
  • Cost Method (Amendments to IAS 7)
  • Credit Risk Disclosures (Amendments to Illustrative Examples accompanying IFRS 7)
  • Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
  • Disclosure of Deferred Difference Between Fair Value and Transaction Price (Amendments to Illustrative Guidance accompanying IFRS 7)
  • Gain or Loss on Derecognition (Amendments to IFRS 7)
  • Hedge Accounting by a First-time Adopter (Amendments to IFRS 1
  • Lessee Derecognition of Lease Liabilities (Amendments to IFRS 9)
  • Transaction Price (Amendments to IFRS 9)
• Climate-related risks in the financial statements — the research review is expected in September 2023 (previously Q3 2023)
• Provisions — Targeted Improvements — A decision on the project’s direction is expected in Q4 2023 (previously H2 2023)

Research projects

• Business combinations under common control — A decision on the project’s direction is expect in September 2023 (pre­vi­ously Q3 2023).
• Extractive activities — A decision on the project’s direction is expect in September 2023 (pre­vi­ously Q3 2023).
• Post-implementation review of IFRS 15: Revenue from Contracts with Customers — After publishing the request for information on 29 June 2023, the next expected project step will now be the discussion of the feedback received (expected in H1 2024).

Strategy and Governance

• ISSB consultation on agenda priorities — Feedback on the request for information is expected in Q4 2023 (previously H2 2023)

Other projects

• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — The proposed IFRS Taxonomy update is expected in September 2023 (previously Q3 2023).
• IFRS Sustainability Disclosure Taxonomy — After publishing the proposed taxonomy on 27 July 2023, the next expected project step will now be the discussion of the feedback received (expected in Q4 2023).

The above is a faithful com­par­i­son of the IASB and ISSB work plan at 27 June 2023 and 28 July 2023. For access to the current work plan at any time, please click here.

The 25-minute webcast offers examples of connected and complementary work between the two boards. The collaborative work is aimed at facilitating holistic, comprehensive and coherent information in companies’ financial reports.

The webcast can be accessed through the press release on the IFRS Foundation website.