Finalisation of agenda decision—IFRS 8 Operating Segments—Disclosure of Revenues and Expenses for Reportable Segments: In its November 2023 meeting, the IFRS IC discussed a submission about the application of IFRS 8:23 which requires an entity to report a measure of profit or loss for each reportable segment and to disclose specified amounts for each reportable segment. The staff concluded that i) an entity is required to disclose the specified amounts in IFRS 8:23(a)-(i) for each reportable segment if those amounts are included in the measure of segment profit or loss or regularly provided to the chief operating decision maker (CODM); and ii) in applying IFRS 8:23(f) by disclosing, for each reportable segment, material items of income and expense disclosed, entities determine what is considered “material” in accordance with IAS 1. In the November 2023 meeting, IFRS IC members agreed with i) above but raised their concerns on ii).
27 comment letters were received. Most of them agreed with the conclusion in i) above. However, the majority disagreed with the interpretation in ii). The staff continued to agree with the analysis in the tentative agenda decision with further explanation and recommends finalising the agenda decision, with some suggested changes.
Initial consideration—IAS 7 Statement of Cash Flows— Classification of Cash Flows related to Margin Calls on “Collateralised-to-Market” Contract: The IFRS IC received a submission about whether an entity presents, in the statement of cash flows, the cash flows related to variation margin call payments on contracts to purchase or sell commodities at a predetermined price in the future as cash flows from activities other than operating or operating activities. The staff concluded that the fact pattern described is unlikely to become widespread and/or have a material effect in the future and decided to publish a tentative agenda decision to explain the reasons for not adding a standard-setting project.
IFRS IC input to IASB projects:
Intangible Assets: A research project on intangible assets has recently been added to the IASB’s work plan. In the initial phase of the project, the IASB would like to seek input on the problem that it is trying to solve, the scope of the project and how best to stage work to deliver timely improvements. The IASB therefore seeks the IFRS IC’s input on those areas.
Business Combinations—Disclosures, Goodwill and Impairment: The purpose of this session is to seek the IFRS IC’s views on three aspects (i.e. identifying strategic business combinations, exemption and impairment test) of the IASB’s proposals included in the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment.
The full agenda for the meeting and our comprehensive pre-meeting summaries can be found here.