Board work plan update: The staff provided an overview of the work plan. In particular, the staff presented completed projects, new projects, expected consultation documents and expected project completions.

Post-implementation review (PIR) of IFRS 9—Impairment: The IASB deliberated the feedback received in response to its request for information Post-implementation Review—IFRS 9 Financial Instruments—Impairment. The IASB decided not to take any further action on the matters raised by respondents regarding the use of forward-looking scenarios and post-model adjustments or management overlays in measuring expected credit losses.

Power purchase agreements: The IASB decided to propose amendments to the own-use requirements and to the hedge accounting requirements in IFRS 9. The IASB also decided to propose a scope for the amendments, as well as disclosure and transition requirements. The IASB gave permission to the staff to begin the balloting process for the exposure draft, which will have a shortened comment period of 90 days.

Second comprehensive review of the IFRS for SMEs standard: The IASB continued the redeliberations of its proposals in the exposure draft (ED) Third edition of the IFRS for SMEs Accounting Standard. In particular, the IASB decided to finalise the proposed amendments to Section 23 Revenue from Contracts with Customers and Section 2 Concepts and Pervasive Principles with some modifications. The IASB also made decisions with regard to other minor issues that were raised by respondents to the ED.

Climate-related and other uncertainties in the financial statements: The staff explained the approach it has taken to develop examples illustrating how to apply requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in financial statements.

Maintenance and consistent application: The IASB decided that some of the disclosure requirements in the forthcoming exposure draft (ED) Use of a Hyperinflationary Presentation Currency by a Non-hyperinflationary Entity should also apply to subsidiaries without public accountability. The IASB gave permission to ballot the ED.

PIR of IFRS 15 Revenue from Contracts with Customers: The IASB decided that no further action should be taken with regard to determining the transaction price, determining when to recognise revenue and disclosure requirements of IFRS 15.

Equity method: The IASB reconfirmed its tentative decisions regarding transitional requirements for the proposed amendments to IAS 28 and gave permission to start the balloting process for the exposure draft.

Management commentary: The IASB discussed the direction of the management commentary project. The staff had identified the following four broad alternative directions that the IASB could take: finalise the project; retire the project; undertake a broader project; and keep the project on hold. IASB members had mixed views on the alternatives but were not asked to make a decision. The alternatives will be discussed at a future meeting.

Catch-up exposure draft of the forthcoming IFRS 19 Subsidiaries without Public Accountability: Disclosures: The IASB decided which disclosure requirements from the forthcoming IFRS 18 Presentation and Disclosure in Financial Statements to propose in the “catch-up exposure draft” following the publication of IFRS 19.

Rate-regulated activities: The IASB continued to redeliberate the proposals in the exposure draft Regulatory Assets and Regulatory Liabilities. In particular, the IASB made decisions on the discount rate and reduced disclosure requirements.

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

Below is an analysis of all changes made to the work plan since our last analysis on 29 February 2024.

Standard-setting projects

• Business combinations — Disclosures, goodwill and impairment — Following the publication of the exposure draft on 14 March 2024, the next expected project step is now the discussion of the feedback received expected to begin in H2 2024
• Financial instruments with characteristics of equity — Discussion of the feedback received on the exposure draft is now expected to begin in May 2024 (previously Q2 2024)

Maintenance projects

• Addendum to the exposure draft 'Third edition of the IFRS for SMEs Accounting Standard' — The exposure draft is now expected in March 2024 (previously April 2024)
• Amendments to the classification and measurement of financial instruments — Final amendments are now expected in May 2024 (previously Q2 2024)

IASB publications expected in March (i.e. this week)

• Addendum to the exposure draft 'Third edition of the IFRS for SMEs Accounting Standard' — see above
• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — as part of the IFRS Accounting Taxonomy 2024
• IFRS Accounting Taxonomy Update — Common practice (Financial instruments) and general improvements — as part of the IFRS Accounting Taxonomy 2024

The above is a faithful comparison of the IASB and ISSB work plan at 29 February 2024 and 26 March 2024. For access to the current work plan at any time, please click here.

The purpose of the session is to inform academics involved in teaching financial reporting modules on the new requirements in IFRS 18 coming into effect on 1 January 2027. The session also aims to stimulate academic discussion and research that will be useful for the post-implementation review of IFRS 18.

The workshop will be structured in three sections: 1) New defined subtotals in the statement of profit or loss; 2) Requirements for aggregation and disaggregation, and 3) Management-defined performance measures.

Please click for more information and registration on the EAA website.

The study into the market for the assurance of sustainability reporting will focus on how well the UK sustainability assurance market is functioning, whether this market is delivering desirable outcomes including high quality assurance with minimal burdens and costs on business, and how the market may develop in the future. The market study will centre on the impact of sustainability assurance across UK companies, considering how sustainability assurance impacts companies, investors and the wider assurance market.

Specifically, the key areas that the market study will explore include:

• Choice, quality and competition in the sustainability assurance market
• Capacity constraints and barriers to entry or expansion
• Potential impacts from changing international regulations
• Any interplay between the sustainability assurance and statutory audit market

The FRC invites all interested parties to submit comments and evidence on the sustainability assurance market by 13 June 2024.  The market study is expected to conclude in early 2025.

A press release including further information and an Invitation to comment is available on the FRC website.  Additionally, an FRC podcast, providing more information on the market study is available on the FRC website.

The agenda items for dis­cus­sion are as follows:

• UKEB Regulatory Strategy 2024/25
• Financial Instruments with Characteristics of Equity – UKEB’s Final Comment Letter, Feedback Statement and [Draft] Due Process Compliance Statement
• Rate-regulated Activities – UKEB Top-down approach
• Business Combinations—Disclosures, Goodwill and Impairment – Project Initiation Plan
• UKEB letter to IASB on connectivity matters
• IASB General Update
• Final Report – Accounting for Intangibles: A Quantitative Analysis
• Final Report – Accounting for Intangibles: User Survey

The meeting agenda and papers and details of how to re­gister are avail­able on the UKEB website.

Update 7 April 2024 - a recording of the meeting is available on the UKEB website here.

During the meeting, the IASB explained its reasons for suggesting a shortened comment period:

• IASB added the project on power purchase agreements as an urgent project in July 2023, following requests from stakeholders for a timely solution of the issue. Following the development of a possible solution by the staff, the IASB then discussed the issue at all meetings from December 2023 to March 2024.
• To achieve its objective of providing a timely solution as asked for by stakeholders, the IASB expects to publish an exposure draft in May 2024 and is currently aiming to finalise the amendments in 2024.
• Throughout the project, the IASB did extensive outreach with stakeholders - "shared the sandbox" with them - so stakeholders know what is coming and will only need to comment on technical details.
• The IASB has clearly communicated on the status of the project and the progress made throughout the project.
• The proposed changes are narrow-scope amendments affecting particular requirements in IFRS 9 only.
• Implementing the proposed amendments would not be burdensome for preparers.

The DPOC followed the reasoning of the IASB and only asked a few clarifying questions. It finally agreed to a shortened comment period of 90 days.

Please click for the following additional information on the IFRS Foundation website:  

• Agenda paper for the meeting explaining the IASB's rationale
• Recording of the DPOC meeting

In May 2023, the DBT working with the Financial Reporting Council (FRC), initiated a review of the non-financial reporting requirements UK companies need to comply with to produce their annual report and to meet broader requirements that sit outside of the Companies Act 2006.  The review looked at what opportunities exist to refresh and rationalise current reporting requirements so that the UK’s non-financial reporting framework is fit for purpose and delivers decision-useful information to the market.

Following the summary of responses to the call for evidence, the impact assessment outlines key planned changes including:  

• Uplift in size thresholds - the Companies Act 2006 company size thresholds are to be increased by 50% in order to reflect historical and future inflation and to reduce regulatory burdens on business.
• Removing requirements from the Directors’ Report: a number of current requirements within the Directors’ Report will be removed either because they are duplicative or no longer considered to provide useful information. This includes information on financial instruments, important events, likely future developments, research and development, branches, employment of disabled persons, engagement with employees, and engagement with suppliers, customers and others.
• Removing requirements from the Directors’ Remuneration Report and Directors’ Remuneration Policy: content which was introduced into UK law as a result of implementing the EU Shareholder Rights Directive will be removed. For example, the requirement to compare the annual percentage change in each director’s remuneration to the average percentage change of employee remuneration as a whole, over a five-year comparison period.

Outside of the reporting framework, changes will also be made to enable annual reports to be shared digitally with members in the first instance and in relation to various audit-related matters including to make technical corrections to the audit regulatory framework on audit committees.

The government intends to make the changes via secondary legislation with a commencement date for the proposals of 1 October 2024.  The statutory instrument to implement these changes is due to be laid before Parliament in Summer 2024. This is considered the first step in the government’s wider reform programme, with further proposals relating to the UK’s non-financial reporting framework expected to be published for public comment in 2024.

A press release is available on the government website.  The impact assessment and summary of responses to the call for evidence are available on the DBT website. 

Update 22 March 2024 - the FRC has issued a press release on its website welcoming these plans.  An FRC podcast discussing what this means for conmpanies is also available on the FRC website.  

Two new organisations will now participate as will one new representative of an organisation that has already been participating. Four members of participating organisations have been reappointed.

For more information, please see the press release on the IFRS Foundation website.

The following topic was discussed:

ISSB consultation on agenda priorities: The ISSB discussed the strategic direction of its activities. The ISSB decided to begin new research and standard-setting projects; support the implementation of IFRS S1 and IFRS S2; enhance the SASB standards; pursue connectivity between the requirements in sustainability and financial reporting standards; seek to ensure that the ISSB standards are interoperable with other sustainability standards; and engage with stakeholders. The ISSB also decided to place a high level of focus on supporting the implementation of IFRS S1 and IFRS S2; to place a slightly lower level of focus on enhancing the SASB standards and on beginning new research and standard-setting projects and to give these activities equal attention; to reserve resources to give the ISSB flexibility; and not to specify a level of focus on connectivity, interoperability and engaging with stakeholders, acknowledging that these activities are integral to all of the ISSB’s work.

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

The agenda for the DPOC meeting is sum­marised below.

Agenda papers for the meeting are available on the IFRS Foun­da­tion's website.