Pre-meeting summaries for the June 2020 IASB meeting

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23 Jun 2020

The IASB will meet via video conference on 23–25 June 2020 for its regular meeting. We have posted our pre-meeting summaries for the meetings 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.

Disclosure Initiative: Accounting Policies: The Board will continue to discuss disclosures that simply duplicate the requirements of a Standard. The staff continue to recommend that the Board apply the concept of materiality to all types of accounting policy information, including accounting policy information that is standardised information or information that duplicates or summarises the requirements of a Standard.

Disclosure Initiative: Targeted Standards-level Review of Disclosures: The Board will decide whether the staff can begin the balloting process on Exposure Draft (ED) Targeted Standards-level Review of Disclosures—Amendments to IAS 19 and IFRS 13. The staff recommend proceeding with a comment period of 180 days (longer than the normal minimum of 120 days because the proposals could have significant consequences).

Extractive Activities: In September 2019, the IASB asked the staff to assess what problems, if any, entities with extractive activities have applying IFRS requirements and whether the primary users of their financial statements are getting all the information they need.  At this meeting the staff report the results of their research, which indicated mixed views. The Board is not asked to make any decisions in this session. Board members are invited to ask questions and to comment on the feedback.

Maintenance and Consistent Application

  • Sale of a Subsidiary to a Customer. In October 2019, the Board discussed the accounting for transactions that involve the sale of a subsidiary to a customer when that subsidiary holds a single asset and whether IFRS 10 or IFRS 15 should apply. The staff conclude that if the inventory that is an output of its ordinary activities, but that inventory (and any related income tax asset or liability) are sold in a corporate wrapper IFRS 15 should apply. The entity cannot retain any interest in the inventory transferred to the customer.
  • Accounting Policy Changes (proposed amendments to IAS 8 in relation to agenda decisions). In December 2019, the Trustees amended the Due Process Handbook to clarify that the explanatory material in an agenda decision derives its authority from the Standards and accordingly, entities are required to apply the applicable Standards, reflecting the explanatory material in an agenda decision. ED/2018/1 Accounting Policy Changes proposed amending IAS 8 to simplify the application of accounting policy changes that result from an agenda decision. The staff recommend that the Board not proceed with the proposed amendments and do no further work on the project.

IBOR: The IASB will discuss feedback on the Exposure Draft (ED) Interest Rate Benchmark Reform—Phase 2 (Proposed Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16), published in April 2020. The staff provide recommendations on all topics except for the proposals on accounting for qualifying hedging relationships and groups of items. That topic will be discussed in July 2020, when the staff also expect to ask the IASB to finalise the proposals.

More information

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

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