January 2018 IASB meeting notes posted

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29 Jan 2018

The IASB met at its offices in London on 24 and 25 January 2018. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The Board discussed the following topics:

Wednesday 24 January

Primary Financial Statements

The Board discussed the presentation of management performance measures and the presentation of the results of associates and joint ventures. The Board decided that (a) all entities be required to specify their key performance measure(s) in the financial statements; identify such measures as MPMs if they are not IFRS-defined measures; and the key performance measures identified in the financial statements must include, as a minimum, those that are communicated in the annual report; (b) the reconciliation between the MPM and IFRS-defined measure be presented in the notes; (c) no specific constraints should be imposed on the MPMs; (d) did not agree to require a five year summary of the MPM; (e) will allow MPM information in the segment note; (f) and not to specify that MPMs are not an IFRS-defined measure (as they relate to regulatory requirements). In relation to associates and joint ventures, the Board decided to propose that entities be required to present the results of ‘integral’ associates and joint ventures separately from ‘non-integral’ associates and joint ventures.

Financial Instruments with Characteristics of Equity

The Board considered the appropriate accounting for non-derivative instruments with equity hosts with complex payoffs. This type of instruments has not been discussed by the Board before and was identified during the review of a pre-ballot draft of the Financial Instruments with Characteristics of Equity Discussion Paper. The instruments under consideration give rise to claims against the entity that are limited to the entity’s available economic resource, but the claims are also affected by other variables such as a commodity index. The Board decided to seek feedback in the DP on whether the embedded derivative should be separated and whether and how the attribution requirements may help provide information about the alternative settlement features.

Thursday 25 January

Conceptual Framework

The Board was updated on the project. The final document is expected to be published in March 2018.


The Board decided to remove the requirements in IAS 36 to (a) use pre-tax inputs when calculating value in use and (b) consider whether to remove the requirement to exclude cash flows relating to uncommitted future restructurings and asset enhancements when calculating value in use.

IFRS Implementation Issues

The Board considered two issues referred to it by the IFRS Interpretations Committee. The first is a possible research project on commodity loans and related transactions, including cryptocurrencies. The Board had mixed views about whether they should take on this project. Several Board members questioned whether there is diversity in practice to such an extent that users have made ill-informed decisions that would justify the Board spending resources on it. But others thought the Board should not be dismissive. One approach would be to assess whether the scope of some existing Standards could be amended to cater for commodities and digital currencies as opposed to creating new Standards for them. This might expedite the Standard-setting process and cover a wider range of transactions. The Board also decided to propose an annual improvement to remove the requirement in IAS 41 to use pre-tax cash flows when fair valuing a biological asset.

Post-implementation review of IFRS 13 Fair Value Measurement

The Board started considering the feedback from its review of IFRS 13. They discussed a review of academic literature, feedback from the request for information and a summary of other research conducted by the staff.  Overall, given that there is general consensus that IFRS 13 is working well, the Chair asked that the Staff propose only changes that are absolutely necessary and not to waste time on nice-to-have improvements.

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

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