The workshop will provide an overview of the IASB’s forthcoming request for information on the post-implementation review of IFRS 9 (Impairment), due to be published by the end of May 2023. The presenters will seek feedback on matters included in the request for information and discuss observations EFRAG has gathered so far.

Please click for more information on the IFRS Foundation website.

The following topic is on the agenda:

• Maintenance of the SASB Standards: In this meeting, the staff is seeking ratification by the ISSB of consequential amendments to the SASB Standards in connection with the issuance of IFRS S2 Climate-related Disclosures. The staff will also ask the ISSB to confirm it is satisfied that it has complied with the applicable due process requirements to publish the climate-related revisions to the SASB Standards.

Our pre-meet­ing summaries is available on our May meeting notes page and will be sup­ple­mented with our popular meeting notes after the meeting.

The following topics are on the agenda:

Business Combinations—Disclosures, Goodwill and Impairment: The staff recommend that the IASB not proceed with its preliminary view to remove the requirement to perform a quantitative impairment test each year and should retain the requirement for an entity to perform an annual impairment test. The staff also recommend that the IASB maintain its preliminary view that it is infeasible to design a different impairment test that is significantly more effective at a reasonable cost.

IASB work plan update: The staff will provide an update on the IASB’s work plan since its last update in March 2023.

Post-implementation review (PIR) of IFRS 15: The IASB will be asked to approve the publication of a Request for Information (RFI) for the PIR of IFRS 15 and whether it agrees with a comment period of 120 days. The publication of the RFI is expected for the end of June 2023.

Maintenance and consistent application: The IASB will discuss further potential annual improvements as well as their effective date and whether early application should be permitted. The staff are asking for approval to begin the balloting process for the upcoming Exposure Draft.

Primary Financial Statements: The IASB will discuss staff recommendations about investments in associates and joint ventures accounted for using the equity method. The IASB will also discuss issues related to management performance measures and IFRS 8.

Subsidiaries without Public Accountability: The IASB will make decisions on whether to retain the disclosure requirements proposed in the draft Standard, after making some targeted changes. The IASB will also discuss the paragraph in the draft Standard that addresses materiality of disclosure requirements as well as disclosure requirements about transition in other IFRS Accounting Standards. Furthermore, the staff will ask the IASB whether disclosure requirements in IFRS Accounting Standards that have been issued since the draft Standard was developed should apply to eligible subsidiaries applying the new Standard.

Management Commentary: The staff will hold an educational session on the comparison between the Management Commentary Exposure Draft and the Integrated Reporting Framework.

Dynamic Risk Management (DRM): The IASB will discuss potential illustrative examples of the application of the current DRM model to support stakeholders in their analysis of the model requirements.

Financial Instruments with Characteristics of Equity (FICE): The staff recommend consequential amendments resulting from the forthcoming FICE Exposure Draft (ED) to the forthcoming Subsidiaries without Public Accountability Standard. The staff will also ask for permission to begin the balloting process for the ED.

Rate-regulated Activities: The IASB will discuss the staff analysis and recommendations on the proposals relating to initial recognition of regulatory assets and liabilities in the Exposure Draft Regulatory Assets and Regulatory Liabilities.

Our pre-meeting summaries is available on our May meeting notes page and will be supplemented with our popular meeting notes after the meeting.

During the meeting, Council members held focused dis­cus­sions on the following topics: (1) future format of Advisory Council meetings, (2) update on the IASB’s activities, (3) update on the ISSB’s activities, (4) facilitating market use of the IFRS Foundation’s sustainability-related resources, (5) IFRS Foundation’s sources of earned revenue, (6) update on the Trustees’ activities, and (7) management commentary and integrated reporting.

The full meeting summary is available on the IFRS Foun­da­tion's website.

The SCC discussed two topics:

• Capacity building. Participants received an update on the capacity building programme. It was acknowledged that capacity building is required for everyone globally, but that there needs to be a specific focus on the Global South. Discussion by participants included questions on the need for guidance for emerging markets and smaller entities, and how SCC members can contribute as partners to the capacity building programme.
• Agenda consultation. The agenda consultation will seek consultation on the ISSB’s agenda priorities beyond climate, informing the broader 2024-6 work plan. SCC participants asked about the development of digital taxonomies and XBRL, the scope of, and delineation between proposed thematic topic areas, connectivity between the Boards, and leveraging existing work that has been done to inform future research.

Please click to access the full summary on the IFRS Foundation website.

The topics covered during the meeting were the following (numbers in brackets are ref­er­ences to the cor­re­spond­ing para­graphs of the summary):

• Agenda planning and feedback from previous ASAF meeting (1–2): The ASAF members discussed topics for its next meeting to be held on 10–11 July 2023 and will include a discussion on the UKEB’s publication on intangibles.
• Equity method research project (3–28): The ASAF members provided views on the IASB’s tentative decisions on the equity method project related to changes in an investor’s ownership interest while retaining significant influence, recognition of losses, and application questions referred to in paragraph 3(a), and potential effects.
• Rate-regulated activities (29–40): The ASAF members were updated on the redeliberations of the Exposure Draft Regulatory Assets and Regulatory Liabilities and the IASB’s tentative decisions on scope and total allowed compensation help to address stakeholders’ concerns about the proposals.
• Disclosure initiative — Subsidiaries without public accountability: Disclosures (41–48): The ASAF members provided views on potential effects of applying the Standard as proposed in the Exposure Draft Subsidiaries without Public Accountability and the benefits of applying the new Standard will outweigh the costs of applying it.
• IASB and ISSB connectivity (49–51): The ASAF members discussed the topic of connectivity and provided comments relating to their jurisdiction.
• Primary financial statements (52–87): The ASAF members were updated on the project and provided feedback on the transition period and effective date of the upcoming IFRS Accounting Standard General Presentation and Disclosures and expected costs and benefits.
• Business combinations — Disclosures, goodwill and impairment (88–131): The ASAF members provided views on some suggestions by respondents related to the Discussion Paper Business Combinations — Disclosures, Goodwill and Impairment.

A full summary of the meeting is available on the IASB's website.

The topics discussed at the meeting included:

• IASB and ISSB update
• Primary financial statements
• Business Combinations — Disclosures, goodwill and impairment
• Equity method

The meeting summary is available on the IASB website.

The next CMAC meeting will be a joint meeting with the Global Preparers Forum on 15-16 June 2023.

The Amendments clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.  The Amendments have an effective date of 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.

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

In the draft 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 draft comment letter sets out a number of areas of potential improvement to the proposals which have been identified from analysis and outreach with stakeholders.

Comments on the draft comment letter are requested by 26 June 2023.

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

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

Stan­dard-set­ting projects

• Climate-related disclosures — The IFRS Sustainability Disclosure Standard is now expected in June 2023 (previously Q2 2023).
• Equity Method — This project was moved from the research agenda to the standard-setting agenda and is now in the exposure draft phase, no expected date given.
• Financial Instruments with Characteristics of Equity — An expect date for the exposure draft is no longer available (previously H2 2023).
• General Sustainability-related Disclosures — The IFRS Sustainability Disclosure Standard is expected in June 2023 (previously Q2 2023).
• Second Comprehensive Review of the IFRS for SMEs Accounting Standard — The feedback on the exposure draft is now expect in June 2023 (previously Q2 2023).

Main­te­nance projects

• Amend­ments to the clas­si­fi­ca­tion and mea­sure­ment of financial in­stru­ments— Feedback on the exposure draft is now expected in Q3 2023 (previously H2 2023).
• Amendments to the IFRS for SMEs Accounting Standard — International Tax Reform — Pillar Two Model Rules — This project has been added to the work plan with an exposure draft expected in June 2023.
• Annual Improvements to IFRS Accounting Standards — Six projects have been added to the work plan with an exposure draft expected in 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)
  • Gain or Loss on Derecognition (Amendments to IFRS 7)
  • Hedge Accounting by a First-Time Adopter (Amendments to IFRS 1)
  • Transaction Price (Amendments to IFRS 9).
• International Tax Reform — Pillar Two Model Rules — The IASB considered the feedback received and will now publish a final amendment in May 2023.
• Lack of Exchangeability (Amendments to IAS 21) — The IFRS Accounting Standard amendment is now expect in July 2023 (previously Q3 2023).

Research projects

• Extractive Activities — The decision on the project direction is expected in July 2023 (previously Q3 2023).
• Post-implementation Review of IFRS 15: Revenue from Contracts with Customers — The request for information is now expected in June 2023 (previously Q2 2023).

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