The 15-minute webcast discusses the IASB’s proposals that aim to ensure that financial statements more faithfully reflect the effects that renewable electricity contracts have on a company.

Please click to access the webcast on the IFRS Foundation website.

The one-hour webinar was dedicated to subtotals and categories in the statement of profit or loss and covered the introduction of three defined categories for income and expenses under IFRS 18 (operating, investing, and financing). It provided insights into the improved structure of income statements and the requirement to provide new defined subtotals, including operating profit.

A recording of the webinar is available on YouTube (please note that the webinar itself only begins after slightly more than two minutes of the recording).

The Financial Reporting Council (FRC) has approved the CCAB bodies for the purpose of issuing a recognised SORP for LLPs incorporated in Great Britain under the Limited Liability Partnerships Act 2000. The members of the CCAB are; The Institute of Chartered Accountants in England and Wales (ICAEW), The Institute of Chartered Accountants of Scotland (ICAS), The Institute of Chartered Accountants in Ireland (ICAI), The Association of Chartered Certified Accountants (ACCA) and The Chartered Institute of Public Finance and Accountancy (CIPFA). 

Amendments have been made to the LLP SORP to:  

• reflect the Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022 (SI 2022/46) which came into effect for financial years beginning on or after 6 April 2022.  These regulations require certain LLPs and groups to make climate-related financial disclosures aligned with the Taskforce for Climate-related Disclosures (TCFD) recommendations.
• provide additional guidance for certain specific scenarios in relation to the sharing of group profits and amounts payable to former members.
• the changes to the post-retirement payments to members section to address certain narrow scenarios when Section 26 Share-based Payment of FRS 102 might apply.
• provide guidance in the SORP on the treatment of profits which are automatically divided to members who do not provide any substantive services to the LLP.
• update the flow chart in paragraph 76B of the SORP and the related text to guide preparers to consider whether a post-retirement obligation falls in the scope of FRS 103 Insurance Contracts prior to then going on to consider whether it falls in the scope of Section 26, Section 21 Provisions and Contingencies , and Section 11 Basic financial instruments and 12 Other financial instruments issues of FRS 102 respectively.

The updated SORP is effective for periods commencing on or after 1 July 2024 with early adoption permitted.

Click for (all links to CCAB website):

• Press release
• Statement of Recommendation Practice - Accounting by Limited Liability Partnerships

The SCC discussed the Inaugural Jurisdictional Guide for the Adoption and other use of ISSB Standards. The ISSB staff outlined the significance and nuances of how the guide facilitates the adoption and other use of the ISSB standards across jurisdictions, highlighting detailed concepts including jurisdiction profiles, necessary modifications and various provisions including transition reliefs. 

The SCC also received an update on the ISSB's consultation on agenda priorities. The ISSB staff reflected on the extensive feedback received as part of the public consultation. This included prioritising the implementation of IFRS S1 and IFRS S2, enhancing the SASB standards, and launching two new research projects focusing on biodiversity, ecosystems and ecosystem services, and human capital. 

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

According to the press release, the webinars are designed to support preparers and other market participants in exploring topics connected to sustainability and disclosure. The series will engage new and experienced preparers each month in expert presentations and discussions supported by organisations in the IFRS Foundation’s Partnership Framework.

The first episode is titled 'The business case for early adoption' and will explain the benefits of early adoption of IFRS S1 and IFRS S2 for entities and investors as well as for global capital markets.

The IFRS Foundation has set up a separate subsite that offers information on all planned episodes, registration for upcoming webcasts and access to recordings of past episodes. 

The podcast discusses the following:

• Recent publications which are key milestones for the ISSB, including:
  • the IFRS Sustainability Disclosure Taxonomy; and
  • the ESRS–ISSB Standards Interoperability Guidance.
• The opening of the new ISSB office in Montreal.
• Upcoming publications, including:
  • new webcasts on current and anticipated financial effects;
  • the inaugural jurisdictional guide for the adoption or other use of ISSB standards; and
  • the ISSB’s agenda consultation feedback statement.
• Forthcoming meetings and events such as:
  • the IOSCO Annual Meetings in Athens;
  • the Trustees of the IFRS Foundation meeting in Singapore;
  • the Sustainability Standards Conference 2024 in Frankfurt; and
  • the IFRS Foundation Conference 2024 in London.

To access the podcast, please see the press release on the IFRS Foundation website.

The DPOC discussed a possible shortened comment period for the IASB exposure draft on power purchase agreements that was published in May 2024. During the meeting, the IASB explained its reasons for suggesting a shortened comment period. The DPOC followed the reasoning of the IASB and agreed to a shortened comment period of 90 days.

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

The agenda items for discussion are as follows:

• Lack of Exchangeability (Amendments to IAS 21) – Adoption Package
• Exposure Draft: Business Combinations—Disclosures, Goodwill and Impairment – Draft Comment Letter
• Power Purchase Agreements – Draft Comment Letter
• Rate-regulated Activities: Possible top-down approach
• IASB General Update

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

The first report, 'Accounting for Intangibles: A Quantitative Analysis of UK Financial Reports', provides an overview of the nature and extent of current reporting of intangibles by UK listed companies. The report:

• analyses the current reporting practice among listed companies, to examine how they account for intangibles (including capitalisation and expensing), together with any associated disclosure;
• looks at the relationship between acquisitions and intangible assets recognition, providing evidence on the extent to which intangible assets are recognised, predominantly as a result of business combinations; and
• provides an estimate of intangibles expenditure potentially not recognised as assets by UK listed companies.

The findings of the report provide evidence on the current reporting practices, some of their limitations, and the prevalence of intangibles beyond the information found on the face of the financial statements in the UK.

The second report, ‘Accounting for Intangibles: A survey of users’ views’, explores, by means of a survey, users’ perspectives on the accounting for and reporting of intangibles in financial statements. The survey addressed the economic importance of intangibles before examining in detail users’ views of the current IFRS accounting for, and reporting of, intangibles. It also examined possible future accounting by presenting respondents with a range of different types of intangibles and considering possible future accounting treatments and disclosures.  The findings provide evidence about the views of investors and other users of financial statements.

These reports follow the UKEB's first report, 'Accounting for Intangibles: UK Stakeholders’ Views', published in March 2023, which set out stakeholder views on the accounting for intangibles under International Accounting Standards within the context of the wider economic impact of intangibles in the UK. 

All three reports are part of the UKEB's research project on intangibles and the findings will be used by the UKEB as an evidence base in its future work on intangibles, as it develops its own views on accounting for intangibles.

Please click to access the reports on the UKEB website.  Also available on the UKEB website is a short video introducing the reports and a summary brochure which provides an overview of the key findings.

The following topics are on the agenda:

Post-implementation review (PIR) of IFRS 9—Impairment: The IASB will deliberate on the feedback received in response to its Request for Information Post-implementation Review—IFRS 9 Financial Instruments—Impairment with regard to credit risk disclosures and other matters. The staff recommends that the IASB classify as medium priority the matters raised by stakeholders about credit risk disclosures and add a project to its research pipeline to make targeted improvements to the disclosure requirements in IFRS 7 about credit risk. The staff also recommends that the IASB classify as medium priority and add to its research pipeline the matter relating to additional illustrative examples for financial instruments with particular features (such as between related parties). Finally, the staff recommends that the IASB concludes the PIR.

Financial instruments with characteristics of equity: The staff will provide a high-level summary of the feedback and key themes emerging from comment letters that have been received in response to the Exposure Draft (ED) Financial Instruments with Characteristics of Equity and from investor outreach activities. No decisions will be requested from the IASB in this meeting.

Second comprehensive review of the IFRS for SMEs Accounting Standard: The IASB will continue the redeliberations of its proposals in the ED Third edition of the IFRS for SMEs Accounting Standard. The IASB will make decisions with regard to Section 9 Consolidated and Separate Financial Statements, Section 23 Revenue from Contracts with Customers, differences between the ED and IFRS 19, and transition requirements.

Proposed IFRS Taxonomy Update—Contracts for Renewable Electricity: The IASB will receive an oral update about how the recent ED Contracts for Renewable Electricity affects the IFRS Accounting Taxonomy.

Rate-regulated activities: The IASB will continue the redeliberations of its proposals in the ED Regulatory Assets and Regulatory Liabilities. In particular, the staff recommends that the final standard should clarify that the income tax consequences of a regulatory asset or regulatory liability may give rise to a separate regulatory asset or regulatory liability. The staff also recommends that the final standard retain the proposal to delete the temporary exception in IAS 8:54G.

PIR of IFRS 15 Revenue from Contracts with Customers: The IASB will analyse the feedback related to matters not discussed in previous meetings. The staff recommends that the IASB take no further action on application matters related to allocating the transaction price to performance obligations and other aspects of applying IFRS 15 raised by respondents.

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