Meeting activities included the following:

• Executive session:
  • Report of the Chair of the Trustees — Erkki Liikanen updated the Trustees on recent meetings with key stakeholders both on the current work of the Foundation and the development of the Foundation’s strategy on sustainability reporting.
  • Report of the Executive Director — The Trustees received a report from the Executive Director Lee White on activities since the last meeting.
  • Update on sustainability reporting — The Trustees discussed progress on sustainability reporting and development of the proposed ISSB. They focused on the development of a business plan and target operating model for the ISSB, and on funding.
  • Agenda consultation — The Trustees received a presentation on the IASB’s Agenda consultation.
  • IASB Chairman’s report — The Chair of the IASB informed the Trustees on the Board’s activities in March to May 2021.
  • Committee reports — The Trustees discussed reports from the Business Process and Technology Committee, the Audit, Finance and Risk Committee, the Human Capital Committee, the Nominating Committee, and the DPOC. (A report of the DPOC meeting is attached to the meeting summary.)
• Other meetings:
  • Following their meeting, the Trustees held their annual meeting with the IFRS Foundation Monitoring Board to discuss the Foundation’s operations and strategy.

For more information, see the full summary on the IFRS Foundation Trustees’ and DPOC meeting on the IASB’s website.

This classification overlay would:

• apply to financial assets that are related to insurance contract liabilities and to which IFRS 9 has not been applied in the comparative period(s);
• allow an entity to classify those financial assets in the comparative period(s) in a way that aligns with how the entity expects those assets would be classified on initial application of IFRS 9;
• apply for comparative periods that have been restated for IFRS 17 (that is, from the transition date to the date of initial application of IFRS 17); and
  
• apply on an instrument-by-instrument basis.

In the discussion, all Board members who spoke supported the amendment. When asked to vote, 13 Board members stated that they are satisfied that the Board has complied with the applicable due process steps and should begin the balloting process to publish an exposure draft; 12 Board members agreed with setting a 60-day comment period for the exposure draft; and no Board member intends to dissent from the proposals in the exposure draft.

The staff expects to publish the exposure draft by the end of July and aims at publishing a final amendment at the end of the year.

For a detailed summary of this session, please see Deloitte's observer notes.

The TRWG is chaired by the IFRS Foundation and includes participants from the Climate Disclosure Standard Board, Financial Stability Board's Task Force on Climate-related Financial Disclosures, IASB, Value Reporting Foundation, and World Economic Forum. The IOSCO and IPSASB are observers of meetings related to review of technical observations and proposals. In addition, the TRWG works with the Global Reporting Initiative and CDP on technical matters.

The TRWG will hold three types of meetings: strategic, operational and technical, and working level. The meeting summaries of its 5 May 2021, 17 May 2021, and 9 June 2021 strategic meetings are now available.

For more information, see the TRWG page on the IASB’s website.

Board work plan update: The staff will provide an update of its activities. The Board completed amendments to: IAS 8 (Definition of Accounting Estimates); IAS 1 (Disclosure of Accounting Policies); IFRS 16 (Covid-19-Related Rent Concessions beyond 30 June 2021); and IAS 12 (Deferred Tax related to Assets and Liabilities arising from a Single Transaction).

At future meetings the Board will be asked whether it wants to add projects for the interaction of IFRS 10 and IFRS 16 (sale of a subsidiary with a leaseback) and amendments to IFRS Practice Statement 2 relating to information about possible future events that have not affected the entity’s financial performance or financial position and have uncertain outcomes, similar to the proposals in the Exposure Draft Management Commentary.

The Board currently has six consultation documents open for comment and expects to publish in the next six months an exposure draft on disclosure by subsidiaries without public accountability and a request for information as part of its post-implementation review of the classification and measurement requirements in IFRS 9.

Accounting for derecognised financial assets when insurers first apply IFRS 17: In May, the Board discussed an accounting mismatch between financial assets and insurance contract liabilities that could arise at the beginning of the comparative period on transition to IFRS 17 when financial assets have been derecognised during the comparative period. The staff recommend that the Board propose a narrow-scope amendment to IFRS 17 to permit an entity to apply a classification overlay in the comparative period(s) presented on initial application of IFRS 17 and IFRS 9. The staff are seeking a 60-day comment period for the ED (which the Trustees cleared this week).

Equity Method—identifying the principles in IAS 28 Investments in Associates and Joint Ventures:  The staff have identified what they consider to be the principles in IAS 28, and principles they say are missing. They plan to use the analysis to address application questions. They do not intend incorporating the principles into IAS 28.

Goodwill and Impairment: The Board will continue its discussion of feedback on particular aspects of the DP—focusing this month on the project’s objective and scope, which the staff recommend be reaffirmed. 

Primary Financial Statements: The staff recommend that the Board require that, if a numerator or a denominator of a ratio meets the definition of an MPM, that numerator or denominator should be included in the scope of the MPM requirements in order to ensure all subtotals of income and expenses used in communicating performance are in the scope of MPMs. The staff recommend that the Board not explore expanding the scope of MPM to include measures based on line items presented in the statement(s) of financial performance, the cash flow statement, the statement of financial position or ratios. 

Maintenance and Consistent Application:

IFRS Interpretations Committee Agenda Decisions

The Board will be asked if any members object to the publication of two agenda decisions: Costs Necessary to Sell Inventories (IAS 2) and Preparation of Financial Statements when an Entity is No Longer a Going Concern (IAS 10).

Supplier Finance Arrangements

The staff recommend that the Board start a narrow-scope standard-setting project on supplier finance arrangements to add qualitative and quantitative disclosure requirements to IAS 7, and ‘sign-posts’ to existing disclosure requirements in IFRS 7. The requirements would explain the type of arrangements within its scope, rather than include specific definitions.

Classification of Debt with Covenants as Current or Non-current (IAS 1)

The staff recommend that the Board amend IAS 1 to specify that, if the right to defer settlement for at least twelve months is subject to an entity complying with conditions after the reporting period, then those conditions do not affect whether the right to defer settlement exists at the end of the reporting period (the reporting date) for the purposes of classifying a liability as current or non-current. There would be additional disclosure requirements and ‘non-current liabilities subject to conditions’ would need to be presented separately in the primary financial statements. If the Board decides to amend IAS 1 as recommended the staff also recommend deferring the effective date of the 2020 amendments by one year.

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

Comments on the consultation paper are due by 15 September 2021. For more information, see the press release on the EFRAG’s website.

The webinar will be held on 30 June 2021.  For the con­ve­nience of stake­hold­ers in different time zones, there will be two sessions of the webinar:

• 09:00-09:45 BST (Morning Session)
• 04:30-05:15 BST (Afternoon Session)

To register for the webcast or for more in­for­ma­tion, please see the press release on the IASB's website.

Update: On 12 July 2021, the IASB has issued a recording of the webinar.

The corrections relate to the Annotated Issued IFRS Standards 2021, the Issued IFRS Standards 2021, the Annotated Required IFRS Standards 2021 and the Required IFRS Standards 2021 and regard erroneously reproduced paragraphs of IFRS 1, IFRS 9 and IAS 39.

Editorial corrections do not change the meaning or application of pronouncements, but instead correct inadvertent errors. The editorial corrections can be viewed on the editorial corrections page of the IASB's website.

The seminar will provide an overview of the IASB’s exposure draft ED/2021/6 Management Commentary and the EFRAG Secretariat’s initial observations.

Please click for more information and registration on the EAA website. A detailed programme of the event is available here.

The ITCG will discuss the following topics:

• Agenda consultation
• Digital reporting implications for the exposure draft Disclosure Requirements in IFRS Standards — A Pilot Approach
• Tagging implicitly reported concepts
• Tagging comparative information reported in accordance with a superseded IFRS Standard

The agenda papers for this meeting are available on the IASB website.

To this end, a survey has been launched that seeks feedback on different aspects of content associated with the Foundation. Please click for more information in the press release on the IASB website.

Please note that the deadline for taking the survey has been extended to 23 July 2021.