June

ESRS outreach event focused on SMEs

30 Jun 2022

On 8 July 2022, the European Financial Reporting Advisory Group (EFRAG) will host a joint outreach event in Brussels to discuss the draft European Sustainability Reporting Standards (ESRS) published in April. The event will have a special focus on small and medium-sized entities (SMEs).

Please click for more information and registration in the press release on the EFRAG website.

UN issues statement on ISSB exposure drafts

29 Jun 2022

Several United Nations (UN) organisations have responded with a joint statement to the proposed standards of the International Sustainability Standards Board (ISSB).

The statement notes that the standards being developed by the ISSB provide a unique opportunity. They can support global convergence of sustainability-related disclosure, create a common reporting baseline, and help mainstream sustainability-related issues into regular business strategy and management.

However, they also warn that a narrow interpretation of enterprise value could mean that ISSB standards could leave out important sustainability risks and opportunities and that the ISSB standards could result in selective disclosure by reporting companies. 

The statement also includes proposed additional elements to consider for improving the standards:

  • Including clear guidance on what constitutes appropriate sustainability analysis and management;
  • encouraging entities to set sustainability targets;
  • requiring geographically contextualized disclosures; and 
  • adopting an explicit long-term time horizon. 

Please click to access the full statement on the UN website.

IFRS Foundation and Value Reporting Foundation consolidation delayed by one month

29 Jun 2022

The consolidation of the Value Reporting Foundation (VRF) into the IFRS Foundation just approved last week has been delayed by one month. The consolidation will now become effective on 1 August 2022.

The press release on the IFRS Foundation website notes that the extra month is needed to finalise the remaining procedures necessary to complete the legal consolidation.

Memorandum of understanding signed to establish ISSB presence in Montreal

28 Jun 2022

During the meeting of the Trustees of the IFRS Foundation currently taking place in Montreal, Canada, the Trustees have signed a memorandum of understanding to obtain the financial support of the Government of Canada and the Government of Quebec for the International Sustainability Standards Board (ISSB).

This support will help the IFRS Foundation to fully establish the ISSB within the Canadian sustainability ecosystem. In exchange, the IFRS Foundation has committed to scheduling initial ISSB meetings to be held in Montreal in October and December 2022 and hosting the inaugural ISSB Symposium in Montreal, with the dates to be confirmed.

Please click for additional information in the press release on the IFRS Foundation website.

Speech of the Chair of the Board of IOSCO at the IFRS Foundation Conference

28 Jun 2022

On 23 June 2022, Mr Ashley Alder, Chief Executive Officer of the Securities and Futures Commission (SFC) of Hong Kong and Chair of the Board of the International Organization of Securities Commissions (IOSCO) outlined in a speech at the IFRS Foundation Conference the path forward for the endorsement of future standards of the International Sustainability Standards Board (ISSB) by IOSCO. A comprehensive summary of the speech is now available on the SFC website.

In his speech, Mr Alder noted that by endorsing the standards, IOSCO would send a strong signal to its large membership of market regulators that they should examine how they might adopt the standards in their own jurisdictions.

While the critical step in evaluating the ISSB standards and finally endorsing them would be to consider the degree to which and how they can be adopted in practice, there were also more detailed points to be considered by IOSCO as well:

  • the ISSB standards should be compatible and connected with existing accounting and financial reporting standards — serving as a “bridge”;
  • they should act as a common base for jurisdiction-level requirements, making them interoperable with one another using a building blocks approach;
  • they should provide the degree of consistency necessary to enable markets to reliably price sustainability-related risks and opportunities and support capital allocation; and
  • they should form the basis for the development of a credible assurance framework.

Mr Alder stressed that he firmly believed the ISSB was the most credible mechanism for achieving the above and creating a baseline for climate disclosure standards.

Mr Alder also commented on the relationship between sustainability disclosures and traditional financial statements and noted this had become increasingly important. He suggested that the ISSB should work closely with the International Accounting Standards Board (IASB) to consider how preparers could be encouraged to develop the factors relevant to calculating enterprise value from a quantitative perspective, and to consider how that calculation might connect to traditional financial statements. The overall aspiration was to bridge the divide between conventional financial disclosures and ISSB sustainability disclosures centred on the concept of enterprise value, so that in combination they paint the full picture.

Please click for the full summary on the SFC website.

G7 welcomes ISSB’s progress on global baseline of sustainability disclosures

28 Jun 2022

Following the G7 Leaders' Summit 2022, a joint declaration has been published that stresses the need for a transition of the whole economy towards sustainability, net-zero and nature-positive outcomes to achieve a sustainable planet.

The declaration mentions the work and progress of the International Sustainability Standards Board (ISSB) and highlights the need of sustainability disclosures for mobilising private sector finance to support the transition to a sustainable economy. It notes:

We welcome the inauguration of the International Sustainability Standards Board’s (ISSB) and its progress of work on the global baseline of sustainability reporting standards. We support mandatory climate-related financial disclosures and look forward to the recommendations of the Taskforce on Nature-related Financial Disclosures.

Please click to access the full statement on the G7 website.

Updated IASB and ISSB work plan — Analysis (June 2022)

27 Jun 2022

Following the IASB's June 2022 meeting, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meeting and other developments since the work plan was last revised in May 2022. Some clarifications now also relate to ISSB projects.

Below is an analysis of all changes made to the work plan since our last analysis on 30 May 2022.

Standard-setting projects

  • Climate-related disclosures — Feedback on the exposure draft will now be discussed in Q4 2022 (previously H2 2022)
  • Disclosure initiative — Subsidiaries without public accountability: Disclosures — The IASB decided to publish a final accounting standard as next project step (no date given)
  • Disclosure initiative — Targeted standards-level review of disclosures — Following the discussion received on the exposure draft, the IASB will decide on the project direction in Q3 2022
  • Dynamic risk management — After deciding on the future direction of the project, the IASB will publish an exposure draft as next project step (no date given)
  • General sustainability-related disclosures — Feedback on the exposure draft will now be discussed in Q4 2022 (previously H2 2022)

Maintenance projects

  • Contractual cash flow characteristics of financial assets — This project has been moved from the standard-setting agenda to the maintenance agenda
  • Lack of exchangeability — The entry of when a decision on the project direction is to be expected has been removed
  • Non-current liabilities with covenants — After discussing the feedback received, the IASB decided to publish a final amendment as next project step in Q4 2022
  • Supplier finance arrangements — Feedback on the exposure draft will now be discussed in July 2022 (previously June 2022)

Research projects

  • Goodwill and impairment — A decision on the project direction is now expected in Q4 2022 (previously H2 2022)
  • Post-implementation review of IFRS 10-12 — The project has been concluded by publishing a feedback statement and has therefore been removed from the work plan

Other projects

  • IFRS Sustainability disclosure taxonomy — Feedback on the staff request for feedback will be now be discussed in Q4 2022 (previously H2 2022)
  • IFRS Taxonomy update — 2022 General improvements and common practice — This project has been renamed from 2021 to 2022

The above is a faithful comparison of the IASB and ISSB work plan at 30 May 2022 and 27 June 2022. For access to the current work plan at any time, please click here.

June 2022 IASB meeting notes posted

24 Jun 2022

The IASB met in London over three days, from Monday 20 to Wednesday 22 June 2022. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed:

Primary Financial Statements

The IASB decided to add a requirement that additional subtotals and line items that are presented in the statement(s) of financial performance in accordance with paragraph 42 of the ED fit into the structure of the proposed categories. The IASB also decided to withdraw the proposal to specifically prohibit columns when presenting MPMs in the statement(s) of financial performance.

Maintenance and consistent application

In November 2010, the IFRS Interpretations Committee asked the IASB to consider amending IAS 1 to clarify when a liability should be classified as current or non-current. That request led to exposure drafts (EDs) in 2012 and 2015 and an amendment in 2020. The effective date of the 2020 amendment was deferred pending further clarifications. In November 2021, the IASB published new amendments with the comment period ending in March 2022. At this meeting the IASB decided to finalise the latest amendments, although not the proposal to require an entity to present separately non-current liabilities with covenants. The IASB also decided to defer the 2020 amendments again, to align them with the effective date of these new, additional, amendments, which would be no earlier than annual reporting periods beginning on or after 1 January 2024.

Post-implementation Review of IFRS 9

The IASB continued to consider feedback from the Request for Information (RFI) Post-implementation Review—IFRS 9 Financial Instruments—Classification and Measurement. At this meeting, the IASB discussed feedback in relation to equity instruments and other comprehensive income. No decisions were made.

Second Comprehensive Review of the IFRS for SMEs Standard

This was the last public decision-making meeting for this project. The IASB granted permission for the staff to prepare the ED and are proposing a comment period of 180 days.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures

The IASB decided to proceed to finalise the draft Standard and not to publish a ‘catch-up’ ED that considers amendments to (and new) IFRS Accounting Standards issued after 28 February 2021 before finalising the Standard. The staff will develop a plan for deliberating the feedback on the ED.

Business Combinations under Common Control

The IASB discussed whether some or all BCUCCs are similar to or differ from IFRS 3 BCs. The staff recommended that assessing whether some or all BCUCCs are similar to or differ from IFRS 3 BCs and assessing the information needs of users will help the IASB tentatively decide whether conceptually the acquisition method or a book-value method should apply to some or all BCUCCs. The IASB was not asked to make any decisions.

Equity Method

At its April 2022 meeting, the IASB discussed possible approaches to the application question and asked the staff to develop its analysis further applying its preferred approach, being that after obtaining significant influence, an investor measures its additional interests in an associate as an accumulation of purchases. The IASB decided that in applying this approach, while retaining significant influence, an investor purchasing an additional interest that is a bargain recognises the bargain purchase gain separately in profit or loss. The IASB rejected the staff recommendation that an investor making a partial disposal determines the portion of the carrying amount of an investment in the associate to be derecognised by applying a specific identification method, if the investor can identify the specific portion of the investment being disposed of and its cost, or the last-in first-out (LIFO) method. The staff will consider whether a different method will be recommended to the IASB.

Contractual Cash Flow Characteristics of Financial Assets

In May 2022, the IASB decided to start a standard-setting project to clarify particular aspects of the IFRS 9 requirements for assessing a financial asset’s contractual cash flow characteristics (i.e. the ‘solely payments of principal and interest’ (SPPI) requirements). The staff set out the proposed objective, scope and an indicative timeline for the project. The proposed objective of this project would be to make clarifying amendments to the application guidance in IFRS 9 to enable the consistent application of the SPPI requirements and to consider whether additional disclosure requirements are needed. The staff plan is for the IASB to consider potential clarifications during the second half of 2022 and publish an ED in the first quarter of 2023. The staff confirmed that the project would not change the mechanics of the effective interest rate method (EIR) but would clarify how to apply the EIR to these instruments.

Financial Instruments with Characteristics of Equity

The IASB has been discussing feedback on the Discussion Paper (DP) published in June 2018, for which the comment period closed in January 2019. IAS 32 has no general requirements on reclassification between financial liabilities and equity instruments and there is diversity in practice when there are changes in the substance of the contractual terms without a modification to the contract such that reassessment would result in a different classification outcome from that initially assessed. The IASB decided to add general requirements on reclassification to IAS 32 to prohibit reclassification other than for changes in the substance of contractual terms arising from changes in circumstances outside the contract. The IASB did not support the staff recommendation to account for a reclassification at the beginning of the first reporting period after the change. The IASB instead decided that the change would be recognised in the period it occurs. It also decided that on reclassification from equity to financial liability, a financial liability would be measured at fair value at the date of reclassification and any difference between the carrying amount of the equity instrument and the fair value of the financial liability would be recognised in equity; and on reclassification of a financial liability to equity, an equity instrument is measured at the carrying value of the financial liability at the date of reclassification and no gain or loss is recognised. The IASB decided to add disclosure requirements for these circumstances.

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

New and revised pronouncements as at 30 June 2022

24 Jun 2022

Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 30 June 2022. This listing can be used to perform a quick check that new financial reporting requirements such as new and revised accounting standards and interpretations, and amendments to standards and interpretations, have been fully considered in the reporting close process. The information below can also be used to assist with the disclosure requirements under paragraph 30 of IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors', which requires entities to disclose any new IFRSs that are in issue but not yet effective and which are likely to impact the entity.

Financial reporting considerations related to the Russia-Ukraine War
Below is our usual analysis of new and amended standards, however, we are also aware that many entities will have been impacted by Russia's invasion into Ukraine. Please see our IFRS in Focus — Financial reporting considerations related to the Russia-Ukraine War highlighting some of the key issues to be considered by the entities in preparing their financial statements.

This table can be used for all annual accounting periods. A 1st quarter ending on 30 June 2022 would mean that the annual reporting period began on 1 April 2022. Similarly, 2nd quarters ending on 30 June 2022 refer to annual periods that began on 1 January 2022, 3rd quarters ending on 30 June 2022 refer to annual periods that began on 1 October 2021, and 4th quarters ending on 30 June 2022 refer to annual periods that began on 1 July 2021.

The information below reflects developments to 12 August 2022 and will be updated through to September 2022 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 June 2022. For accounts approved after June 2022, please also refer to subsequent versions of this document for any new and revised IFRSs that have additionally been issued that might require disclosure in the accounts under IAS 8:30.

The information below is organised as follows:

 

Summary

Pronouncements applicable to entities applying IFRSs at the IASB effective dates

The table below provides a summary of the pronouncements which will be mandatorily applied by entities for the first time at 30 June 2022, for various quarterly reporting periods:

Pronouncement Effective date* Mandatory at 30 June 2022?
1st qtrs 2nd qtrs 3rd qtrs Full yrs
AMENDMENTS
Applying IFRS 9 'Financial Instruments' with IFRS 4 'Insurance Contracts' (Amendments to IFRS 4)
1 January 2018 Optional° Optional° Optional° Optional°
Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
1 January 2021 ** ** Yes Yes
Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) 1 April 2021 ** Yes Yes Yes
Reference to the Conceptual Framework (Amendments to IFRS 3) 1 January 2022 Yes Yes - -
Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16) 1 January 2022 Yes Yes - -
Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) 1 January 2022 Yes Yes - -
Annual Improvements to IFRS Standards 2018–2020 1 January 2022 Yes Yes - -

* Generally annual periods beginning on or after the date indicated, may only apply to first-time adopters in some limited cases (see the detailed information for each pronouncement below for full details).

** This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

° The application of both approaches (overlay approach/ deferral approach) is optional and an entity is permitted to stop applying them before the new insurance contracts standard is applied.

More information about these pronouncements, and all new and revised pronouncements, is set out below.

 

Financial statement considerations in adopting new and revised pronouncements

Where new and revised pronouncements are applied for the first time, there can be consequential impacts on annual financial statements, including:

  • Impact of transitional provisions. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors contains a general requirement that changes in accounting policies are retrospectively applied, but this does not apply to the extent an individual pronouncement has specific transitional provisions.
  • Disclosures about changes in accounting policies. Where an entity changes its accounting policy as a result of the initial application of an IFRS and it has an effect on the current period or any prior period, IAS 8 requires the disclosure of a number of matters, e.g. the title of the IFRS, the nature of the change in accounting policy, a description of the transitional provisions, and the amount of the adjustment for each financial statement line item affected
  • Third statement of financial position. IAS 1 Presentation of Financial Statements requires the presentation of a third statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statements in a number of situations, including if an entity applies an accounting policy retrospectively and the retrospective application has a material effect on the information in the statement of financial position at the beginning of the preceding period
  • Earnings per share (EPS). Where applicable to the entity, IAS 33 Earnings Per Share requires basic and diluted EPS to be adjusted for the impacts of adjustments result from changes in accounting policies accounted for retrospectively and IAS 8 requires the disclosure of the amount of any such adjustments.

Whilst disclosures associated with changes in accounting policies resulting from the initial application of new and revised pronouncements are less in interim financial reports under IAS 34 Interim Financial Reporting, some disclosures are required, e.g. description of the nature and effect of any change in accounting policies and methods of computation.

 

New or revised standards


IFRS 17 Insurance Contracts

IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 Insurance Contracts as of 1 January 2023.

Issued: 18 May 2017

Effective date:

Applicable to annual reporting periods beginning on or after 1 January 2023
Endorsed for use in the EU, albeit with an optional exemption from applying the annual cohort requirement.

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


 

 

Amendments


Applying IFRS 9 'Financial Instruments' with IFRS 4 'Insurance Contracts' (Amendments to IFRS 4)

Amends IFRS 4 Insurance Contracts provide two options for entities that issue insurance contracts within the scope of IFRS 4:

  • an option that permits entities to reclassify, from profit or loss to other comprehensive income, some of the income or expenses arising from designated financial assets; this is the so-called overlay approach;
  • an optional temporary exemption from applying IFRS 9 for entities whose predominant activity is issuing contracts within the scope of IFRS 4; this is the so-called deferral approach.

The application of both approaches is optional and an entity is permitted to stop applying them before the new insurance contracts standard is applied.

Issued: 12 September 2016

Effective date:

Overlay approach to be applied when IFRS 9 is first applied. Deferral approach effective for annual periods beginning on or after 1 January 2018 and only available for five years after that date.

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current.

Issued: 23 January 2020

Effective date:

Annual reporting periods beginning on or after 1 January 2023
Not yet endorsed for use in the EU.

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Reference to the Conceptual Framework (Amendments to IFRS 3)

The amendments update an outdated reference to the Conceptual Framework in IFRS 3 without significantly changing the requirements in the standard.

Issued: 14 May 2020

Effective date:

Annual reporting periods beginning on or after 1 January 2022

First quarters ending 30 June 2022:

Mandatory

Second quarters ending 30 June 2022:

Mandatory

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16)

The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss.

Issued: 14 May 2020

Effective date:

Annual reporting periods beginning on or after 1 January 2022

First quarters ending 30 June 2022:

Mandatory

Second quarters ending 30 June 2022:

Mandatory

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37)

The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract).

Issued: 14 May 2020

Effective date:

Annual reporting periods beginning on or after 1 January 2022

First quarters ending 30 June 2022:

Mandatory

Second quarters ending 30 June 2022:

Mandatory

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Annual Improvements to IFRS Standards 2018–2020

Makes amendments to the following standards:

  • IFRS 1 – The amendment permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure cumulative translation differences using the amounts reported by its parent, based on the parent’s date of transition to IFRSs.
  • IFRS 9 – The amendment clarifies which fees an entity includes when it applies the ‘10 per cent’ test in paragraph B3.3.6 of IFRS 9 in assessing whether to derecognise a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf.
  • IFRS 16 – The amendment to Illustrative Example 13 accompanying IFRS 16 removes from the example the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives are illustrated in that example.
  • IAS 41 – The amendment removes the requirement in paragraph 22 of IAS 41 for entities to exclude taxation cash flows when measuring the fair value of a biological asset using a present value technique.

Issued: 14 May 2020

Effective date:

Annual reporting periods beginning on or after 1 January 2022

First quarters ending 30 June 2022:

Mandatory

Second quarters ending 30 June 2022:

Mandatory

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Amendments to IFRS 17

Amends IFRS 17 to address concerns and implementation challenges that were identified after IFRS 17 Insurance Contracts was published in 2017. The main changes are:

  • Deferral of the date of initial application of IFRS 17 by two years to annual periods beginning on or after 1 January 2023
  • Additional scope exclusion for credit card contracts and similar contracts that provide insurance coverage as well as optional scope exclusion for loan contracts that transfer significant insurance risk
  • Recognition of insurance acquisition cash flows relating to expected contract renewals, including transition provisions and guidance for insurance acquisition cash flows recognised in a business acquired in a business combination
  • Clarification of the application of IFRS 17 in interim financial statements allowing an accounting policy choice at a reporting entity level
  • Clarification of the application of contractual service margin (CSM) attributable to investment-return service and investment-related service and changes to the corresponding disclosure requirements
  • Extension of the risk mitigation option to include reinsurance contracts held and non-financial derivatives
  • Amendments to require an entity that at initial recognition recognises losses on onerous insurance contracts issued to also recognise a gain on reinsurance contracts held
  • Simplified presentation of insurance contracts in the statement of financial position so that entities would present insurance contract assets and liabilities in the statement of financial position determined using portfolios of insurance contracts rather than groups of insurance contracts
  • Additional transition relief for business combinations and additional transition relief for the date of application of the risk mitigation option and the use of the fair value transition approach

Issued: 25 June 2020

Effective date:

Annual reporting periods beginning on or after 1 January 2023

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)

The amendment changes the fixed expiry date for the temporary exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments, so that entities would be required to apply IFRS 9 for annual periods beginning on or after 1 January 2023.

Issued: 25 June 2020

Effective date:

Immediately available.

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Amendment to IAS 1)

The amendment defers the effective date of the January 2020 amendments by one year, so that entities would be required to apply the amendment for annual periods beginning on or after 1 January 2023.

Issued: 15 July 2020

Effective date:

Immediately available.
Not yet endorsed for use in the EU.

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)

The amendments in Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) introduce a practical expedient for modifications required by the reform, clarify that hedge accounting is not discontinued solely because of the IBOR reform, and introduce disclosures that allow users to understand the nature and extent of risks arising from the IBOR reform to which the entity is exposed to and how the entity manages those risks as well as the entity’s progress in transitioning from IBORs to alternative benchmark rates, and how the entity is managing this transition.

Issued: 27 August 2020

Effective date:

Annual reporting periods beginning on or after 1 January 2021

First quarters ending 30 June 2022:

[Note 1]

Second quarters ending 30 June 2022:

[Note 1]

Third quarters ending 30 June 2022:

Mandatory

Annual periods ending 30 June 2022:

Mandatory


Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)

The amendments require that an entity discloses its material accounting policies, instead of its significant accounting policies. Further amendments explain how an entity can identify a material accounting policy. Examples of when an accounting policy is likely to be material are added. To support the amendment, the Board has also developed guidance and examples to explain and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2.

Issued: 12 February 2021

Effective date:

Annual reporting periods beginning on or after 1 January 2023
Endorsed for use in the EU, however, as practice statements are not endorsed for application in the European Union, the amendments to IFRS Practice Statement 2 have not been endorsed.

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Definition of Accounting Estimates (Amendments to IAS 8)

The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change in accounting estimate that results from new information or new developments is not the correction of an error.

Issued: 12 Febraury 2021

Effective date:

Annual reporting periods beginning on or after 1 January 2023

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)

The amendment extends, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification.

Issued: 31 March 2021

Effective date:

Annual reporting periods beginning on or after 1 April 2021

First quarters ending 30 June 2022:

[Note 1]

Second quarters ending 30 June 2022:

Mandatory

Third quarters ending 30 June 2022:

Mandatory

Annual periods ending 30 June 2022:

Mandatory


Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)

The amendments clarify that the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition.

Issued: 7 May 2021

Effective date:

Annual reporting periods beginning on or after 1 January 2023

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Initial Application of IFRS 17 and IFRS 9 — Comparative Information (Amendment to IFRS 17)

The amendment permits entities that first apply IFRS 17 and IFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of IFRS 9 had been applied to that financial asset before.

Issued: 9 December 2021

Effective date:

An entity that elects to apply the amendment applies it when it first applies IFRS 17
Not yet endorsed for use in the EU.

First quarters ending 30 June 2022:

Optional

Second quarters ending 30 June 2022:

Optional

Third quarters ending 30 June 2022:

Optional

Annual periods ending 30 June 2022:

Optional


Editorial Corrections (various)

The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since the beginning of calendar 2020, such corrections have been made in July 2020, September 2020, October 2020, November 2020, June 2021, October 2021, December 2021 and January 2022.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

Effective date:

As minor editorial corrections, these changes are effectively immediately applicable under IFRS


 

 

IASB Chair discusses the IASB work plan

24 Jun 2022

At the IFRS Foundation Conference currently held in London, IASB Chair Andreas Barckow discussed the IASB’s decisions on its work plan as a result of the outcomes of the IASB's third agenda consultation and the rationale for these decisions.

Mr Barckow grouped his arguments into five major messages the IASB received from its stakeholders:

  • Completing the IASB's current work plan. The IASB will prioritise completing projects currently on the agenda before beginning new ones. It expects to continue the deliberations on its current projects throughout 2022 and the majority (if not all) of 2023. Mr Barckow described the projects on primary financial statements, goodwill and impairment, and rate-regulated activities as being "in an intense stage of decision-making".
  • Balancing the IASB's activities. Even though standard-setting is the core activity of the IASB, it also engages in supporting the consistent application of IFRSs, assisting the digital consumption of financial reports, and actively involving in stakeholder engagement around the world. The feedback received indicates that the balance of the IASB’s activities is about right, however, there were calls for increasing the efforts on digital reporting and on understandability and accessibility of the standards. Therefore, the IASB will provide for a modest increase in these two areas.
  • Two new research pipeline projects. The IASB considered the suggestions made by stakeholders and weighed them against the criteria set for adding new projects to its agenda and the likely time needed to complete its current projects. The IASB has decided to add a comprehensive review of its standard on intangible assets, IAS 38, and a project devoted to the statement of cash flows and related matters.
  • Climate-related risks as a maintenance pipeline project. As the IASB has already published educational guidance on how to consider climate-related risks in financial statements, this will not be a full-scale project in its own right. The IASB wants to investigate whether there are any shortcomings in today’s reporting in the financial statements by entities and, if so, whether these shortcomings are due to a deficiency in its literature. Interaction with the ISSB has also to be considered in this case. 
  • A limited reserve list of two further projects. The IASB has decided to create a reserve list of projects and add operating segments and pollutant pricing mechanisms to it. They will only be added to the work plan if additional capacity becomes available unexpectedly. If they are not activated, they will be included for consideration in the next agenda consultation.

Mr Barckow concluded his remarks with short a short discussion of the connectivity between the IASB and the ISSB and where projects on the agenda of the two Boards may overlap. Please click to access the full transcript of his speech on the IFRS Foundation website.

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