Stakeholders highlighted the Statement of Cash Flows, governed by IAS 7, as an area for improvement. The IASB’s review project will involve research, including consultations with stakeholders, an examination of existing studies on cash flow report, and the extent of the perceived deficiencies in current reporting practices and assess the potential benefits of introducing new financial reporting requirements. The IASB has outlined a tentative timeline for the review process, with plans to evaluate the initial research findings and outline subsequent steps by the first quarter of 2025.

For more information, see the press release on the IFRS’s website.

Guarantees issued on obligations of other entities: The IFRS IC received a submission about how an entity, in its separate financial statements, accounts for guarantees that it issues on obligations of its joint venture in certain fact patterns. As the fact patterns submitted are highly specific and subtle differences in the specific facts and circumstances could change the conclusion, the staff considered that it would be inappropriate for the IFRS IC to conclude on the matter. Instead, the staff recommended that the IFRS IC publish a tentative agenda decision identifying the IFRS Accounting Standards an entity considers in accounting for guarantees that it issues. All IFRS IC members agreed with the decision not to conclude on how the three submitted fact patterns are accounted for and supported the approach of providing a framework and a flow chart decision tree to help entities determine which standards to apply.

IFRS 15—recognition of revenues from tuition fees: The IFRS IC received a submission about the period over which an entity that provides educational services recognises revenue from tuition fees when applying IFRS 15. The staff concluded that there is no evidence of diversity in how those educational institutions recognise revenue from tuition fees and recommended that the IFRS IC publish a tentative agenda decision explaining the reasons for not adding this matter to its agenda. Most of the IFRS IC members agreed that there is no sufficient evidence for diversity in the ‘over time’ recognition of the tuition fee described in the fact pattern and agree publishing a tentative agenda decision with some changes.

IFRS IC input into IASB projects:

• Pollutant pricing mechanisms: The purpose of the session was to obtain IFRS IC members’ input on the prevalence and significance of pollutant pricing mechanisms, and whether IFRS IC members have observed deficiencies in the accounting for these mechanisms. This information will contribute to the IASB’s horizon scanning activities and helping the IASB make an informed decision on whether to prioritise a project on the topic. In the meeting, IFRS IC members shared their views and thoughts on each of the areas.
• Post-implementation review (PIR) of IFRS 16: The purpose of this session was to seek IFRS IC members’ views on the implementation and ongoing application of IFRS 16 and to identify matters to include in the forthcoming request for information (RFI) for public consultation. In the meeting, IFRS IC members shared their thoughts on the various aspects of the PIR.

More In­for­ma­tion

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

The following topics are on the agenda:

An investor perspective on the ISSB’s work plan: The ISSB will receive a presentation about the investor perspective on its work plan.

Biodiversity, ecosystems and ecosystem services, and human capital: The ISSB will discuss connections between the content in the industry-based Sustainability Accounting Standards Board (SASB) standards and the ISSB’s new research projects. No decisions will be asked of the ISSB.

Enhancing the SASB standards: In this session, the ISSB will examine the general structure of the industry-based SASB standards and analyse several disclosure topics and metrics in detail. The ISSB will not be asked for any decisions.

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

The following topics are on the agenda:

Power purchase agreements: The IASB will discuss staff recommendations on the scope of the amendments proposed in Exposure Draft (ED) Contracts for Renewable Electricity and the proposed own-use amendments.

Dynamic risk management: The IASB will discuss potential disclosure requirements for the dynamic risk management model and the circumstances for discontinuation of the model by an entity.

Amortised cost measurement: The IASB will be asked to make the project active and discuss the project direction.

Management commentary: The IASB will be given the opportunity to comment on the staff’s proposed approach in developing targeted refinements to the ED Management Commentary and will be asked for decisions on the suggested targeted refinements to proposals on Chapters 1-3 in the ED.

Statement of cash flows and related matters: The IASB will announce that the project is moving from the research pipeline to the research work plan. In addition, IASB members will be invited to ask questions on topics arising from its third agenda consultation and the academic literature review on this topic, and the planned research to support the decision on the scope of the project.

Addendum to the ED Third edition of the IFRS for SMEs Accounting Standard: The IASB will discuss feedback received in response to the ED Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard. The staff recommends to finalise the proposals and asks for permission to ballot the third edition of the IFRS for SMEs standard.

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

The agenda items for discussion are as follows:

• Amendments to the Classification and Measurement of Financial Instruments – Draft Endorsement Criteria Assessment  
• Exposure Draft: Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures – Draft Comment Letter
• Exposure Draft: Climate-related and Other Uncertainties in the Financial Statements – Draft Comment Letter
• IASB General Update

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

The session on dynamic risk management has been moved to 16 September (previously 17 September) while the session on the addendum to the Exposure Draft Third edition of the IFRS for SMEs has moved to 17 September (previously 16 September).

The full agenda for the meeting can be found here.

A press release and the podcast are available on the FRC website.

The update lists EFRAG sustainability publication, namely, EFRAG publishes XBRL Taxonomy for ESRSs set 1, issued in August 2024.

The update also covers EFRAG's other financial reporting and sustainability reporting activities.

Please click to download the August 2024 EFRAG Update from the EFRAG website.

The FRC has issued the following documents (all links to the FRC website):

• Overview of the financial reporting framework;
• FRS 100 Application of Financial Reporting Requirements;
• FRS 101 Reduced Disclosure Framework;
• FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;
• FRS 103 Insurance Contracts;
• Implementation Guidance to accompany FRS 103 Insurance Contracts;
• FRS 104 Interim Reporting; and
• FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.

The revised edition of the 'Overview of the financial reporting framework’ reflects developments in accounting standards, legislation and regulation. The Foreword to Accounting Standards is unchanged.

The FRC reminds stakeholders that some previously issued amendments are not mandatory until future reporting periods and that earlier editions, and separate details of each amendment, continue to be available on the FRC’s website. 

In addition to the September 2024 editions of UK and Ireland Accounting Standards, the FRC will also be publishing updated staff factsheets to support preparers implementing the ‘Periodic Review 2024 amendments’.

Click here for:

• Press release (link to FRC website)
• Our publication: Need to know - Amendments to FRS 102- Periodic Review 2024

The two organisations have agreed to collaborate on building market uptake of each other’s methodologies, to promote each other’s research, to offer joint stakeholder engagement, to align their fundraising activities, and to collaborate on capacity building initiatives.

More information is available in a press release on the GRI website.