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September 2020 IASB meeting notes posted

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29 Sep 2020

The IASB met on Tuesday 22 and Wednesday 23 September 2020 via video conference. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

Maintenance and Consistent Application — Lease Liability in a Sale and Leaseback — Sweep Issue: The staff are drafting the exposure draft (ED) to amend IFRS 16. They identified matters that the Board needed to consider. The Board decided that the ED specify that when measuring the ROU asset and lease liability arising from a sale and leaseback, a seller-lessee determines the proportion of the asset sold that relates to the right of use it retains by comparing the present value of the expected payments for the lease to the fair value of the asset sold.  It also decided to modify its tentative proposed approach for how a seller-lessee subsequently measures the lease liability arising from the leaseback such that the seller-lessee would reduce the carrying amount of the lease liability to reflect expected payments for the lease at market rates. The ED is expected to be published in November 2020.

Business Combinations under Common Control: The BCUCC Discussion Paper is expected to be published in November 2020. The Board decided to have a comment period of 180 days.

Management Commentary: The Board decided that the proposed revised practice statement remain a non-binding framework for the preparation of management commentary; require management commentary to include an unqualified statement of compliance with the Practice Statement if it complies with all the requirements in the Practice Statement; retain the requirement that when management commentary relates to financial statements, an entity should either make the financial statements available with the management commentary or identify in the management commentary the financial statements to which it relates; and require an entity to specify the date when its management commentary is authorised for issue and to reflect any material information about events occurring after the end of the reporting period and before the date when the management commentary was authorised for issue.

Extractive activities: The staff papers summarise the results of outreach to determine what problems, if any, entities with extractive activities have applying IFRS Standards and whether the primary users of financial statements of entities with extractive activities are obtaining all the information they need for these entities. The Board asked the staff to examine further differences identified between jurisdictions of reserve and resource disclosure requirements.

Rate-regulated Activities: The staff are drafting the ED on regulatory assets and liabilities. They identified matters that the Board needed to consider. The Board decided to change the definitions of a regulatory asset and regulatory liability and to clarify the measurement of regulatory returns on assets not yet available for use.  The Board also decided to have a comment period of 150 days. The ED is expected to be published in January 2021.

Board work plan update: The staff gave the Board an oral update on the work plan. The staff intend to bring more formal work plan updates every 3 to 4 months.

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

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