During the meeting, ISSB members will discuss IFRS S1 transition relief.

The agenda for the meeting is available here and the paper to be discussed can be accessed on the IFRS Foundation website.

From 1 October 2021, the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 (the Climate and Governance Regulations) require trustees of certain schemes to consider climate-related risks and opportunities in more detail than before. Under the requirements, trustees must identify, assess, and manage climate-related risks and opportunities, and report on what they have done. These reporting requirements were developed from the recommendations of the Taskforce on Climate-Related Financial Disclosures (TCFD).

The review was performed by TPR in order to share emerging good practice.  Findings highlighted some good practice with respect to trustees taking action including:

• planning climate and sustainability training for trustees and others involved in scheme governance about climate-related risks and opportunities
• developing a trustee policy on investment beliefs relating to climate change
• conducting due diligence and checking advisers' climate credentials
• working with investment managers to obtain better data
• allocating more funds to sustainable investments
• using stewardship to manage climate-related risks
• switching to climate-tilted pooled funds

However, whilst there were some areas of good practice, the review also found several areas requiring improvement.  Common issues included:

• a lack of sufficient background information on the scheme meaning disclosures were difficult to interpret – particularly for more complicated arrangements such as hybrid or sectionalised schemes
• disclosures of strategy, scenario analysis and metrics activities were not always provided at the appropriate level as described in statutory guidance from the Department for Work and Pensions (DWP)
• accessibility issues, which could make it difficult for savers and others to find and access reports online, including long or complicated web addresses and use of PDFs not compatible with those using reader accessibility requirements
• Some reports missed disclosures required by DWPs statutory guidance.

TPR expects trustees, advisers, and in-house teams to carefully consider the findings when preparing future reports under the Climate and Governance Regulations.  The findings may also be useful to trustees of smaller schemes that are not subject to the regulations in helping them to improve their management of climate-related risks and opportunities. 

A press release and the full review are available on TPR website.

The UKEB joint draft Endorsement Criteria Assessment covers the following amendments to IAS 1 Presentation of Financial Statements:

• Classification of Liabilities as Current or Non-current (Amendments to IAS 1); and
• Non-current Liabilities with Covenants (Amendments to IAS 1).

The UKEB's draft assessment 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 concludes that the Amendments are likely to be conducive to the long-term public good in the UK.

Comments on the joint draft Endorsement Criteria Assessment are requested by 8 June 2023.

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

In its final comment letter, the UKEB welcomes the exposure draft and supports its objectives, the accelerated timetable and the introduction of a mandatory temporary exception from accounting for deferred tax arising from the Pillar Two model rules. In addition, the letter also sets out some potential enhancements to the proposals which have been identified from analysis and outreach with stakeholders.

The final comment letter is available on the UKEB website.

The objective of the (proposed) contract is to assist the staff of the UKEB in its ex-ante impact analysis of IASB Exposure Draft (ED) Exposure Draft (ED)2021/1 Regulatory Assets and Regulatory Liabilities by supporting the UKEB Secretariat with economic expertise in specified areas. This will serve as an input to the assessment of whether the use of the ED is likely to have an adverse impact on the economy of the UK, including on economic growth.

Further details are available on the government website.

The UK Endorsement Board published its draft comment letter in February 2023 and its final comment letter in March 2023.

The feedback statement presents the views of UK stakeholders received during the UKEB's public consultation on its draft comment letter and explains how the UKEB's final comment letter addressed those views. 

The feedback statement is available on the UK Endorsement Board website.

The report notes that economically, intangibles are an important determinant of companies’ performance and outcomes in financial markets. While there has been a significant increase in the economic value of intangibles over the last 15 years, this increase can only be inferred indirectly as many intangible items are not recognised in national or company accounts.

UK stakeholders involved in the production and use of general-purpose financial statements were interviewed for the report and highlighted concerns about current IFRS Accounting Standards. The report also identifies a range of possible enhancements to the accounting suggested by stakeholders.

Please click to access the report on the UKEB website.

Below is an analysis of all changes made to the work plan since our last analysis on 2 March 2023.

Standard-setting projects

• Disclosure initiative — Targeted standards-level review of disclosures — This project has been removed from the work plan as the IASB completed it by publishing a project summary and feedback statement on 8 March 2023
• International applicability of the SASB standards — This project has been newly added to the work plan; the ISSB expects to publish an exposure draft in May 2023

Maintenance projects

• Amendments to the classification and measurement of financial instruments — The IASB published an exposure draft on 21 March 2023; the next expected project step is the discussion of the feedback received in H2 2023
• Climate-related risks in the financial statements — This project has been newly added to the work plan; the IASB expects to review the research in H2 2023

Other projects

• IFRS Accounting Taxonomy Update — 2022 General improvements and common practice — This project has been removed from the work plan as the IFRS Foundation included final updates in the 2023 IFRS Accounting Taxonomy
• IFRS Accounting Taxonomy Update — Amendments to IFRS 16 and IAS 1 — This project has been removed from the work plan as the IFRS Foundation included final updates in the 2023 IFRS Accounting Taxonomy

The above is a faithful comparison of the IASB and ISSB work plan at 2 March 2023 and 27 March 2023. For access to the current work plan at any time, please click here.

Below is an analysis of all changes made to the work plan since our last analysis on 30 January 2023.

Stan­dard-set­ting projects

• Climate-related disclosures  — The standard is now expected in Q2 2023 (pre­vi­ously no date given).
• General sustainability-related disclosures — The standard is now expected in Q2 2023 (pre­vi­ously no date given).

Main­te­nance projects

• Lack of ex­change­abil­ity (Amend­ments to IAS 21) — Final amend­ments to IAS 21 are now expected in Q3 2023 (pre­vi­ously H2 2023).
• Supplier finance arrangements — Final amend­ments are now expected in May 2023 (pre­vi­ously Q2 2023).

Research projects

• Extractive activities — A decision on the project direction is now expected in Q3 2023 (previously H2 2023).
• Post-implementation review of IFRS 9 — Impairment — A request for information is now expected in May 2023 (pre­vi­ously Q2 2023).

Strategy & gov­er­nance projects

• ISSB Con­sul­ta­tion on Agenda Pri­or­i­ties — A request for in­for­ma­tion is expected in May 2023 (pre­vi­ously Q2 2023).

Other projects

• IFRS Accounting Taxonomy Update —Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — New entry in the work plan; a proposed update is expected in March 2023.
• IFRS Accounting Taxonomy Update — Amendments to IFRS 16 and IAS 1 — The final update is expected in H2 2023.

The above is a faithful com­par­i­son of the IASB and ISSB work plan at 30 January 2023 and 2 March 2023. For access to the current work plan at any time, please click here.