IASB meeting — 17–19 May 2016

Start date:

End date:

Location: London

IASB (International Accounting Standards Board)

The International Accounting Standards Board (IASB) met at its offices in London on 17–19 May 2016. Again, a large part of the meeting was dedicated to the agenda consultation with over seven hours of discussion spread over all three days. Other major topics on the agenda were Insurance/IFRS 9 and financial instruments with characteristics of equity (both on Tuesday afternoon) and the Conceptual Framework (Wednesday morning).

Technical decisions

The IASB concluded its discussions on the interaction between IFRS 9 and the yet to be finalised new requirements for insurance contracts.  The Board decided to require that the predominant activity be reassessed if there is a demonstrable change in the corporate structure.  Also, the deferral method will not be available beyond 2021.    

The staff will now start the balloting process—the formal steps the Board takes to review and approve the final wording of the amendments.  Publication of the amendments, which will be made to IFRS 4 Insurance Contracts, is expected in September.  

In its discussions on revisions to the Conceptual Framework, the Board focused on revisions to the chapters on objectives and qualitative characteristics originally developed in 2010.  The Board agreed with most of the recommendations on adding more about stewardship and measurement uncertainty, but more work needs to be done on prudence.

Agenda Consultation

The Agenda Consultation occupied a large part of the agenda.  Most of the sessions were designed to provide an update to the Board on the work being undertaken in the individual projects so that it can shape its priorities, including adding new projects and removing some. 

Most of the discussion centred on how to prioritise and communicate the research programme.  There remains some confusion among board members as to the role of the research programme. 

The Board decided to extend the period between consultations from three years after the completion of the last consultation to five years.  

Research and other projects

The Board confirmed that its research on share-based payments has come to a natural end and that the conclusion is that the IASB can allow the natural interpretations process to operate—standards-level activity is not required.  The IASB will conclude its work by issuing some education material on targeted areas.

The work that came out of the post-implementation review of IFRS 3 Business Combinations on goodwill also continued.  The session began with a review of descriptive statistics on business combination and goodwill accounting compiled by staff of the Japanese standard-setter (the ASBJ) and EFRAG.  The staff also provided some additional analysis of a new approach to isolating the goodwill associated with a specific business combination. 

The Board continued its discussions on distinguishing between liabilities and equity.  The topic was the attribution of profit or loss and other comprehensive income to derivative equity claims, and how the topic will be explained in the Discussion Paper.   

The IASB also had an education session in which some preliminary research on the accounting for income taxes was presented.


Agenda for the meeting

Tuesday, 17 May 2016

Afternoon session (13:00–18:00)

  • Insurance and IFRS 9
  • Share-based payments
  • Financial instruments with characteristics of equity
  • Agenda Consultation:
    • Dynamic risk management
    • Post-employment benefits
    • Primary financial statements
    • Foreign currency translation
    • High inflation

Wednesday, 18 May 2016

Morning session (9:00–13:15)

  • Income taxes (education session)
  • Conceptual Framework

Afternoon session (14:00–16:00)

  • Agenda Consultation:
    • Disclosure Initiative – Cash restrictions
    • Interval between agenda consultations
    • Potential new topics
    • Extractive activities, intangible assets and research and development

Thursday, 19 May 2016

Morning session (9:00–12:45)

  • Agenda Consultation:
    • Equity method
  • Goodwill and impairment
  • Agenda Consultation:
    • Goodwill and impairment

Afternoon session (13:30–15:00)

  • Revenue from contracts with customers (oral update)
  • Agenda Consultation:
    • Definition of a business
    • Developing the draft working plan

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

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