March 2023 IASB meeting notes posted

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28 Mar, 2023

The IASB met in London from 20-23 March 2023. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed

Climate-related risks in the financial statements: The IASB commenced its project on climate-related risks in the financial statements. Particularly, the staff presented the origins of the project, the purpose of the project and the planned initial steps for the project. The IASB was not asked to make any decisions on the project.

Work plan update: In this session, the staff provided an update on the IASB’s work plan since the last update in December 2022. The purpose of the session was to provide a holistic view of the IASB’s technical projects to support decisions about whether to add or remove projects, as may be discussed in individual project papers and assessment of overall progress on the work plan, including project prioritisation and timing. No decisions were made.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures: In this session, the IASB continued its redeliberations of the relationship of the new IFRS Accounting Standard with the IFRS for SMEs Accounting Standard. The IASB decided to assess separately the costs and benefits for subsidiaries applying the reduced disclosure Standard and the costs and benefits for SMEs applying the IFRS for SMEs.

Equity Method: In this session, the IASB discussed three application questions on its project to revise IAS 28. The IASB decided to propose that, when applying IAS 28, an investor purchasing an additional interest in an associate while retaining significant influence would recognise any difference between the cost of the additional interest and its additional share in the net fair value of the associate’s identifiable assets and liabilities either as goodwill, or as a gain from a bargain purchase. The IASB also decided to propose that an investor, in applying IAS 28, would recognise the full gain or loss on all transactions with its associate, and to propose improvements for the disclosure requirements when an investor recognises the full gain or loss on transactions with its associate.

Primary Financial Statements: The IASB decided on detailed revisions to the Exposure Draft in the areas of disclosure of operating expenses by nature in the notes; management performance measures (MPMs)—rebuttable presumption; MPMs—relationship with the requirements of other IFRS Accounting Standards; MPMs—tax disclosure; issues related to categories in the statement of profit or loss; and issues related to the proposals for entities with specified main business activities.

Post-implementation Review of IFRS 15: The IASB discussed which questions to include in the forthcoming Request for Information. In particular, the IASB decided to include questions on the standard as a whole and the convergence with US GAAP; the five steps of revenue recognition; principal versus agent considerations; licensing; disclosures; transition; and the interaction with IFRS 9, IFRS 10 and IFRS 16.

Business Combinations—Disclosures, Goodwill and Impairment: In this session, the IASB made decisions about some of the IASB’s preliminary views regarding reducing the cost and complexity of the impairment test, and some aspects of the proposed package of disclosure requirements in IFRS 3.

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

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