April 2019 IASB meeting notes posted

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16 Apr 2019

The IASB met on Tuesday 9, Wednesday 10 and Thursday 11 April 2019. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The Board considered the package of amendments to IFRS 17 Insurance Contracts it has been considering since June 2018 and decided to proceed with them. In June 2018 the Board decided to propose some minor changes that it planned to include in the next Annual Improvements cycle. These will instead be included with the exposure draft for the package of IFRS 17 amendments. The Board also decided that the effective date of IFRS 17 and the proposed amendments should be for annual periods beginning on or after 1 January 2022 (with earlier application permitted). The Staff will be seeking clearance from the Due Process Oversight Committee to have a shorter than normal comment period.

The Board considered the feedback it received on the exposure draft Accounting Policies and Accounting Estimates (Amendments to IAS 8). A majority of members thought that any clarification of such fundamental principles as accounting estimates, which affect many balances reported, provides valuable benefits to preparers, users and regulators and therefore worth the costs of implementing, at least some of, the proposed amendments.

The project looking at goodwill and impairment returned to the Board. The Board decided to include in the Discussion Paper possible new disclosures that the acquirer of a business be required to provide information to help a user of the financial statements assess whether a business combination was a good investment decision and whether that business is performing as expected.

In Dynamic Risk Management the Board reached a preliminary view that negative balances within the target profile should not be permitted within DRM model; the changes to the risk management strategy and the target profile must occur infrequently; and the risk management strategy must be clearly documented within a specified time horizon and cannot be defined in a way that is contingent. They also reached a preliminary view that separate line items in the primary financial statements should not be required for derivatives designated in the DRM model from other derivatives or for accumulated changes in fair value of designated derivatives. That information would be provided in the notes to the financial statements. Also, net interest margin should include the aligned portion but not the misaligned portion.

For the Disclosure Initiative the Board decided to proceed with an exposure draft to propose adding two examples to the Materiality Practice Statement related to accounting polices.

The Board decided that it need not pursue a single measurement approach for all business combinations under common control.  

In the Primary Financial Statements project the Board decided to clarify that MPMs (management performance measures) are subject to the general requirement that information included in the financial statements must provide a faithful representation. They also decided that entities can only identify a measure as an MPM if they use the same measure in their public communications. The Board also decided that they need to clarify presentation issues related an entity’s “main business activities.”

There were updates on Implementation Matters, the Research Programme and (orally) Management Commentary.  

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

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