Pre-meeting summaries for the April 2022 IASB meeting

  • IASB meeting (blue) Image

22 Apr 2022

The IASB met in London over four days, from Monday 25 to Thursday 28 April 2022. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. We summarised 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.

The following topics are on the agenda:

Management Commentary

At this meeting, the IASB will continue discussing feedback on its proposals for a revised Practice Statement on management commentary, as set out in the ED/2021/6 Management Commentary. No decisions will be asked from the IASB in this session.

Primary Financial Statements

The IASB will continue discussing the proposal in the ED that would require an entity that presents an analysis of operating expenses by function in the statement of profit or loss to disclose, in a single note, an analysis of its total operating expenses by nature. The IASB will consider a partial matrix approach and is asking for feedback on the proposed scope for future papers on the topic. The staff do not make any recommendations or ask the IASB to make any decisions.

Third Agenda Consultation

The staff recommend that the IASB add a maintenance and consistent application project on climate-related risks and research pipeline projects on intangible assets and statement of cash flows and related matters. They also recommend a reserve list of projects: operating segments and pollutant pricing mechanisms and not add to its work plan projects on cryptocurrencies and related transactions or going concern disclosures.

Maintenance and consistent application

At its March 2022 meeting, the IFRS Interpretations Committee decided to finalise an agenda decision in response to a submission about a demand deposits with restrictions on use. IASB members will be asked if they object to the agenda decision.

Post-implementation Review of IFRS 9

At this meeting, the IASB will discuss feedback on assessing a financial asset’s contractual cash flow characteristics. Most respondents shared the view that generally the contractual cash flow characteristics assessment works as intended.

Second Comprehensive Review of the IFRS for SMEs Standard

At its March 2022 meeting, the IASB decided on an approach to develop proposed amendments to the disclosure requirements in the IFRS for SMEs Accounting Standard that would result in consistency between these disclosure requirements and ED/2021/7 Subsidiaries without Public Accountability: Disclosures. At this meeting the IASB will deliberate the exceptions to that approach. 

Goodwill and Impairment

The staff have performed further research on the practical concerns raised by stakeholders on the IASB’s preliminary views to require entities to disclose information about the subsequent performance of business combinations and quantitative information about synergies expected from business combinations. The purpose of this meeting is to provide the IASB with a summary of the staff research. The agenda paper also provides information about the project plan and how this research is relevant to that plan. The IASB will not be asked to make any decisions during this session.

Equity Method

In October 2020, the IASB discussed and decided on the objective and approach of the Equity Method project. The IASB last discussed this project in October 2021. At this meeting, the IASB will discuss the staff analysis on purchases of an additional interest in an associate without a change in significant influence and to present a summary of the research findings on changes made to IFRS Accounting Standards arising from the Conceptual Framework, the Business Combinations and the Joint Arrangements project.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures

The IASB published ED/2021/7 Subsidiaries without Public Accountability: Disclosures in July 2021, setting out proposed reduced disclosure requirements. At this meeting, the IASB will discuss the feedback from comment letters and outreach events on the ED. The IASB will not be asked to make any decisions. While most respondents agreed with the objective of the draft Standard, there were mixed views on the proposed scope and whether the IASB should have started with IFRS Accounting Standards rather than the IFRS for SMEs Accounting Standard. 

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

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.