IASB meeting — 18–19 July 2016

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End date:

Location: London

IASB (International Accounting Standards Board)

The International Accounting Standards Board (IASB) met at its offices in London on 18–19 July 2016.

On Monday 18 July the IASB finalised a narrow scope amendment that was developed for it by the IFRS Interpretations Committee on reclassifying property into, or out of, investment properties. They also finalised the 2014-2016 annual improvements cycle and approved the expose draft for the 2015-2017 cycle.

The IASB continued its consideration of comments on the Conceptual Framework exposure draft, focusing this month on the asset definition, recognition and measurement. There was general support for the proposed asset definition and recognition criteria, although there was considerable discussion on how the Framework should explain rights to public goods. The staff will be developing new wording.

There was also an extended debate on the proposed measurement chapter. Many Board members had concerns with the discussion on the roles the variability of value and how an asset (or liability) contributes cash flows to a business should influence the selection of a measurement basis. The staff were asked to do more work on this section, and it will come back to the Board at a future meeting.

On Tuesday 19 July the IASB continued its discussions on its research project on financial instruments with the characteristics of equity. It has been developing a model (referred to as Gamma) which separates claims into liabilities and equity on the basis of when economic resources must be transferred and how the amount of the claim is determined. Equity creates a right for the claimant to receive economic resources only at liquidation and for a residual amount. A liability gives the claimant the right to economic resources at particular points in time other than at liquidation or for a specified amount that is independent of the economic resources of the entity.

The Board tested the model against derivatives and continues to support this approach, emphasising that derivatives would not be separated into components.

The Board also received an update on the research programme. These updates are expected to be made roughly each quarter.

And finally, the Board was given an update on feedback from the IFRS Advisory Council on the recent agenda consultation.

The IASB will next meets again in public in September.

Agenda for the meeting

Monday, 18 July 2016 (10:00–17:45)

  • Insurance and IFRS 9
    • Sweep issue: quantitative disclosures applicable for entities applying the temporary exemption from IFRS 9
  • IFRS Implementation issues
    • IAS 40 — Transfers of investment property
    • Annual improvements — 2014-2016 cycle
    • Annual improvements — 2015-2017 cycle
  • Conceptual Framework

Tuesday, 19 July 2016 (9:00–12:45)

  • Financial instruments with characteristics of equity
  • Research programme
    • recent developments in active research projects
    • projects in the research pipeline
    • research projects for which no further work is planned
    • the research process
  • Agenda consultation
    • Draft work plan – Advisory Council feedback

Agenda papers for this meeting are available on the IASB's website.

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