April 2023 IASB meeting notes posted

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03 May, 2023

The IASB met in London on 25–27 April 2023. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed:

Dynamic Risk Management: The IASB discussed risk mitigation intention and the construction of the benchmark derivatives, as well as further considerations on the current net open risk position. The IASB supported all staff recommendations and will continue its discussion on the topics identified in the project plan.

Financial Instruments with Characteristics of Equity: The IASB voted in favour of the staff recommendations related to proposed amendments to IFRS 7 in relation to an entity’s issued equity instruments, additional disclosures related to classification and presentation topics, and proposed transition requirements.

Rate-regulated Activities: The IASB discussed long-term performance incentives and derecognition. The IASB decided that the final Accounting Standard retains the proposal that an entity is required to estimate the amount of a long-term performance incentive and determine the portion of that estimated amount that relates to the reporting period using a reasonable and supportable basis. The IASB also supported several staff recommendations with regard to the derecognition of regulatory assets and liabilities.

Maintenance and consistent application: The IASB did not object to the IFRS Interpretations Committee Agenda Decision ‘Definition of a Lease—Substitution Rights (IFRS 16)’ and discussed the March 2023 IFRIC Update.

Equity Method: The IASB decided that an entity should recognise a deferred tax asset (or liability) on the difference between its share of the fair value and the tax base of an associate’s identifiable assets and liabilities. The IASB also decided to move the project to its standard-setting work plan; work towards publishing an exposure draft as the next due process step; continue to use the expertise of its advisory bodies instead of establishing a consultative group; and update the project’s objective.

International Tax Reform—Pillar Two Model Rules: The IASB decided to instigate narrow-scope standard-setting to amend Section 29 Income Tax of the IFRS for SMEs Accounting Standard for the upcoming amendment to IAS 12 with regard to international tax reform.

Provisions—Targeted Improvements: The IASB discussed an amendment of the liability definition and the requirements and guidance supporting the present obligation recognition criterion, applying concepts added to the Conceptual Framework in 2018. No decisions were made.

Business Combinations under Common Control (BCUCC): The IASB discussed the project direction and the measurement method to apply to a BCUCC. No decisions were made.

Post-implementation Review of the IFRS 9 impairment requirements: The IASB approved the publication of the Request for Information (RFI) and agreed with a 120-day comment period for the RFI.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures: The IASB made decisions on aspects of the proposed disclosure requirements and language in the draft Standard.

An analysis of how the IASB’s work plan has changed as a result of the meeting is available here.

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

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