Supply Chain Financing Arrangements — Reverse Factoring: In its April 2020 meeting, the staff presented the research performed on supply chain financing ("SCF") arrangements submitted. The staff recommend that the Committee:

• publish a tentative agenda decision outlining how IFRS applies to different aspects of accounting for them; and
• develop new disclosure requirements for arrangements entered in to fund payables to suppliers.

IFRS 16 Leases — Sale and Leaseback with Variable Payments: In March 2020, the Committee published a tentative agenda decision stating that for a sale and leaseback transaction with variable payments the seller-lessee recognises a lease liability at the date of the transaction, even if all the payments for the lease are variable and do not depend on an index or rate, reflecting how the right-of-use asset is measured to determine the gain or loss on the sale and leaseback transaction. The staff recommend that the Committee finalise the tentative agenda decision, but to refer to the liability as a financial liability rather than a lease liability.

IAS 12 Income Taxes — Deferred Tax Related to an Investment in Subsidiary: In March 2020, the Committee published a tentative agenda decision that when an entity expects to recover the carrying amount of its investment in the subsidiary through distributions of profits by the subsidiary, the entity uses the distributed tax rate to measure the deferred tax liability related to its investment in the subsidiary. The staff recommend that the Committee finalise the tentative agenda decision with minor editorial changes.

IAS 38 Intangible Assets — Player Transfer Payments: In November 2019, the Committee published a tentative agenda decision stating that when a football club transfers a player to another club it recognises the gain or loss in profit or loss applying IAS 38, and not revenue (IFRS 15). However, the agenda decision suggested that the intangible asset could be classified as inventory (IAS 2) if it was is acquired for development and sale in the ordinary course of business. The staff recommend finalising the agenda decision, but with all references to IAS 2 removed.

Work in progress: The staff are analysing requests related to the hedge of variability in cash flows in real terms and sale and leaseback in a corporate wrapper.

The full agenda for the meeting can be found here. We will update this page for any changes to the agenda and our Deloitte pre-meeting summaries for the meeting as they become available.