April

Pre-meeting summaries for the April IASB meeting

20 Apr 2018

The IASB meets at its offices in London on Tuesday 24 and Wednesday 25 April 2018. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. For each topic to be discussed we summarise the agenda papers made available by the IASB staff and point out the main issues to be discussed by the IASB and the staff recommendations.

The Board will discuss six topics.

Tuesday

Primary Financial Statements

At this meeting the Board will discuss clarifying the requirements for management performance measures (MPMs) and requirements for management-defined adjusted earnings per share (adjusted EPS) in the financial statements.

Business Combinations under Common Control

The purpose of this session is to provide an update to the Board on the approaches being developed by the staff for BCUCC transactions.  It is an education session, which means that Board members are not being asked to make any decisions.

Wednesday

Goodwill and impairment

The Board will continue its discussions on the goodwill and impairment research project. At this meeting it will be asked whether it wants to change the requirement to recognise all identifiable assets acquired in a business combination separately from goodwill and whether the next stage in the project should be to issue a Discussion Paper or an Exposure Draft.

Dynamic Risk Management [Macro-hedging]

The Board will discuss qualifying criteria for the financial liabilities used to determine an entity’s target profile, the designation and de-designation of financial liabilities within the Dynamic Risk Management (DRM) model and corresponding documentation requirements.

Disclosure Initiative – Definition of Material

In 2017 the IASB published a proposal to amend the definition of material in IAS 1 and IAS 8. The comment period closed in January 2018. At this meeting the Board will discuss a general summary of the comments received on the exposure draft to amend the definition of material in IAS 1 and IAS 8. The Board is not being asked to make any decisions.

Implementation

The Board will review the activities of the IFRS Interpretations Committee. The discussion will include concerns raised by respondents about the Committee providing technical responses to highly-specific fact patterns submitted.

More information

Our pre-meeting summaries are available on our April meeting note page and will be supplemented with our popular meeting notes after the meeting.

IFRS Foundation issues supporting materials for the IFRS for SMEs Standard

19 Apr 2018

The IFRS Foundation has issued three stand-alone educational modules which support the learning, application, and reading of financial statements prepared with the IFRS for SMEs Standard.

The IFRS Foundation expects to issue stand-alone modules for each section of the 2015 IFRS for SMEs Standard (35 in total). The first three modules issued cover the following topics:

  • Small and medium-sized entities.
  • Financial statement presentation.
  • Property, plant and equipment.

For more information, access the IFRS for SMEs modules (free registration required) and see the press release on the IASB’s website.

IFRS Foundation Monitoring Board publishes work plan

19 Apr 2018

The IFRS Foundation Monitoring Board (MB), responsible for the oversight of the IFRS Foundation, has published its 2018-2019 work plan.

The Monitoring Board's planned activities are organised into two sections:

  • Reviewing the Trustees’ oversight of the IASB
    • review and comment on the Trustees ́ plan for the review of the IASB ́s due process arrangements
    • continue the dialogue with the Trustees on accounting matters of broad public interest for consideration by the IASB
  • Monitoring and conferring with the Trustees on their responsibilities
    • continue its ongoing dialogue with Trustees on the efforts to strengthen the governance framework of the IFRS Foundation
    • follow up of the IFRS Reputation research report
    • discuss the progress and results of the IFRS Foundation’s exercise to identify and evaluate its operational risks
    • continue to review the adequacy and appropriateness of the Trustees’ arrangements for the IFRS Foundation’s funding
    • participate and provide input and help to the IFRS Foundation nomination and approval process for Trustee candidates, including the Chair

The work plan is available on the IASB's website.

ASBJ and OIC hold joint meeting

19 Apr 2018

On 18 April 2018, the Accounting Standards Board of Japan (ASBJ) and the Italian standard-setter Organismo Italiano di Contabilità (OIC) held a joint meeting in Rome. The meeting was the second bilateral meeting between the two standard-setters.

In addition to giving updates on their respective standard-setting activities at the meeting, the two boards exchanged views on the EFRAG Discussion Paper Equity Instruments - Impairment and Recycling and IFRS implementation issues including revenue recognition, leases, financial instruments and insurance contracts. They also discussed other projects in which they both have an interest including separate finacial statements and virtual currencies.

For more information about the meeting, see the press release on the ASBJ website.

Insurance contracts transition resource group releases meeting agenda

18 Apr 2018

The IASB has released the agenda for IFRS 17 transition resource group (TRG) meeting on 2 May 2018.

The purpose of the TRG is to seek feedback on potential issues related to implementation of IFRS 17 Insurance Contracts. By analysing and discussing potential implementation issues, the TRG will help the IASB determine whether additional action is needed, such as providing clarification or issuing other guidance. This meeting will be the second meeting where technical matters will be discussed.

The agenda for the meeting is as follows:

Wednesday, 2 May 2018

  • Welcome and introductory remarks
  • Combination of insurance contracts
  • Determining the risk adjustment for non-financial risk in a group of entities
  • Cash flows within the contract boundary
  • Boundary of reinsurance contracts held with repricing mechanisms
  • Determining the quantity of benefits for identifying coverage units
  • Implementation challenges outreach report
  • Reporting on other questions submitted
  • Administrative matters

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

IPSASB publishes proposed 'Improvements to IPSAS, 2018'

17 Apr 2018

The International Public Sector Accounting Standards Board (IPSASB) has published an exposure draft 'Improvements to IPSAS, 2018', which sets out proposed amendments to International Public Sector Accounting Standards (IPSAS) to address issues raised by stakeholders and to converge with amendments to IFRSs.

The proposed IFRS convergence amendments reflect the following IASB amendments:

  • Annual Improvements to IFRSs 2011 – 2013 Cycle (issued December 2013)
  • Disclosure Initiative (Amendments to IAS 7) (issued January 2016)
  • Transfers of Investment Property (Amendments to IAS 40) (issued December 2016)
  • Annual Improvements to IFRSs 2014 – 2016 Cycle (issued December 2016)
  • IFRIC 22 Foreign Currency Transactions and Advance Consideration (issued December 2016)
  • Annual Improvements to IFRS Standards 2015 – 2017 Cycle (issued December 2017)
  • Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) (issued February 2018)

Please click to access the exposure draft Improvements to IPSAS, 2018 on the IPSASB website. Comments are requested by 15 July 2018.

April 2018 IASB meeting agenda posted

13 Apr 2018

The IASB has posted the agenda for its next meeting, which will be held at its offices in London on 24–25 April 2018. There are six topics on the agenda.

The Board will discuss the following:

  • Primary financial statement
  • Business combinations under common control
  • Goodwill and impairment:
    • Next stage in the research project
    • Recent feedback from CMAC and GPF
  • Dynamic risk management:
    • Designation and qualifying criteria
    • The dynamic nature of portfolios
  • Disclosure initiative: Comment letter feedback on ED/2017/6 Definition of Material (Proposed amendments to IAS 1 and IAS 8)
  • Implementation:
    • IFRIC Update — March 2018
    • IFRIC Update — January 2018
    • Interpretations Committee process

The full agenda for the meeting can be found here. We will post any updates to the agenda, our comprehensive pre-meeting summaries as well as observer notes from the meeting on this page as they become available.

Agenda for the April 2018 ITCG meeting

11 Apr 2018

The agenda is available for the next meeting of the IFRS Taxonomy Consultative Group (ITCG), which will be held on 19 April 2018.

The agenda is summarised below:

Thursday 19 April 2018 (9:30-16:45)

  • Better communication theme — short update
  • Principles of Disclosure ― technology and digital reporting
  • IFRS Taxonomy — technology review
  • IFRS Taxonomy implementation support
    • Introduction
    • Breakout session
    • Report from breakout session
  • IFRS Taxonomy content — areas for discussion
  • Handling of entity-specific disclosures
  • Update by ITCG members on developments directly relating to the IFRS Taxonomy and/or the use of technology for financial reporting

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

Summary of the March 2018 CMAC meeting

11 Apr 2018

The IASB has released a summary of the Capital Markets Advisory Committee (CMAC) meeting, which was held in London on 2 March 2018.

The topics discussed at the meeting included:

  • Primary financial statements:
    • Introducing management performance measures and management-defined adjusted earnings per share (adjusted EPS) into financial statements; and
    • Proposed improvements to the presentation of the share of profit or loss of associates and joint ventures in the statement(s) of financial performance.
  • Discussion Paper: Disclosure Initiative — Principles of Disclosure:
    • Preparers’ views on addressing the disclosure problem;
    • The relative prioritisation of five specific topics included in the DP; and
    • The effect of technology and digital reporting on the project.
  • Goodwill and impairment:
    • An approach to the impairment testing of goodwill that considers movements in headroom; and
    • The requirement in IFRS 3 Business Combinations to recognise all identifiable intangible assets acquired in a business combination separately from goodwill.
  • Rate-regulated activities:
    • Whether using the disclosure objective in IFRS 14 Regulatory Deferral Accounts would be a good starting point for developing the disclosure objective for the model;
    • The usefulness of the preliminary set of disclosures; and
    • Whether entities should be required to provide all the resulting information within their financial statements, rather than in another location, such as in management commentary.

The next CMAC meeting will take place on 14–15 June 2018.

For more information, see the meeting page and the meeting summary on the IASB's website.

ASBJ adopts IFRS 9 unmodified as JMIS

11 Apr 2018

The Accounting Standards Board of Japan (ASBJ) has issued amendments to ‘Japan’s Modified International Standards (JMIS): Accounting Standards Comprising IFRSs and the ASBJ Modifications'.

The amendments reflect the endorsement process on IFRS 9 (2014) and the Standards issued by the IASB as of 30 June 2017 and are effective on or after 1 January 2018, with the exception of IFRS 16 and IFRS 17.

After careful consideration, the ASBJ decided that no ‘deletions or modifications’ should be made for this round of endorsement process, therefore, the amendments made simply reflect the endorsement of the pronouncements.

For more information, see the press release and related documents on the ASBJ website (all documents available in the English language).

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