February 2023 IASB meeting notes posted

28 Feb 2023

The IASB met in London from 20-23 February 2023. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics have been discussed:

Maintenance and consistent application

The IASB made its final decisions on supplier finance arrangements and lack of exchangeability, and discussed potential items for the next annual improvements cycle.

Supplier Finance Arrangements—The IASB decided that the effective date for the amendments should be for annual reporting periods beginning on or after 1 January 2024, with earlier application permitted. The IASB also decided not to require disclosure of comparative information for prior periods in the annual reporting period it first applies the amendments. Further, the IASB decided not to require the disclosure of certain quantitative information in an entity’s first annual financial statements after the amendments become effective. The IASB expects to issue the amendments in the second quarter of 2023.

Lack of ExchangeabilityThe IASB decided to proceed with the amendments to IFRS 1 as proposed in the ED but make no amendments to IFRS 13. The IASB also decided to require an entity to apply the amendments for annual reporting periods beginning on or after 1 January 2025, with earlier application permitted. The IASB expects to issue the amendments in the third quarter of 2023.

Annual Improvements to IFRS Accounting Standards—The IASB decided to propose amendments relating to the following items in its next Annual Improvements cycle: hedge accounting by a first-time adopter (IFRS 1); determination of a ‘de facto agent’ (IFRS 10); transaction price (IFRS 9); cost method (IAS 7); gain or loss on derecognition (IFRS 7); credit risk disclosures (IFRS 7).

Post-implementation Review of the IFRS 9 Impairment Requirements

The IASB discussed which items to include in the upcoming Request for Information (RFI) on the post-implementation review of the IFRS 9 impairment requirements. The IASB decided to include the following topics: general approach to recognition of expected credit losses (ECL); determining significant increase in credit risk; measurement of ECL; purchased or originated credit-impaired financial assets; simplified approach for trade receivables, contract assets and lease receivables; loan commitments and financial guarantee contracts; interaction between ECL and other requirements; transition; and objective-based disclosure requirements. The IASB will be asked to approve the publication of, and set a comment period for, the RFI at a future meeting.

Rate-regulated Activities

The IASB redeliberated the proposals on recognition and total allowed compensation in the Exposure Draft Regulatory Assets and Regulatory Liabilities. The IASB made specific decisions with regard to the recognition threshold, enforceability and recognition and performance incentives.

Dynamic Risk Management

The IASB discussed whether financial assets measured at FVOCI or FVPL are eligible for inclusion in the concept of current net open risk position (CNOP). The IASB decided that financial assets measured at FVOCI are eligible for designation in the CNOP, while financial assets measured at FVPL are not eligible for designation in CNOP. The IASB also decided not requiring the retrospective assessment against an entity’s target profile, and only keep the retrospective assessment to check whether the entity has mitigated interest rate risk during the assessment period when applying the DRM model. Instead, the IASB decided the introduction of another retrospective assessment based on the entity’s capacity to realise the expected benefits.

Financial Instruments with Characteristics of Equity

The IASB made decisions related to the classification and presentation of issued financial instruments applying IAS 32 and IAS 1. The IASB made specific decisions with regard to the fixed-for-fixed condition, reclassification, the effects of laws on contractual terms, obligations to redeem own equity instruments, and presentation of financial liabilities and equity instruments.

Business Combinations—Disclosure, Goodwill and Impairment

The IASB decided on certain aspects of the proposed package of new disclosures, focusing on the application of the ‘management approach’, how long information should be required for, changing metrics, use of ranges, and key objectives.

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

GPF seeks members

28 Feb 2023

The Global Preparers Forum (GPF) is seeking new members with an emphasis for candidates based in emerging economies, North America, and South America with experience in the technology and/or media sectors.

The closing date for ap­pli­ca­tions is 31 March 2023. New members will start on 1 June 2023 for a term lasting between two to five years. For more in­for­ma­tion, see the press release on the IFRS Foundation website.

G20 Finance Ministers and Central Bank Governors' statement notes ISSB progress

28 Feb 2023

The G20 has issued a meeting summary of the First G20 Finance Ministers and Central Bank Governors meeting held in Bangalore on 24-25 February 2023.

The statement takes note of the progress made by the ISSB and also notes a progress report that is expected later this year:

  • "We look forward to the early finalization of standards by the International Sustainability Standards Board (ISSB) for climate-related financial disclosures, and its work beyond climate."
  • "[The] FSB, in coordination with the ISSB and IOSCO, [is] to prepare a report on the progress of jurisdictions and firms on climate-related financial disclosures by October 2023."

Please click to access the full statement on the G20 website.


IASB issues podcast on latest Board developments (February 2023)

27 Feb 2023

The IASB has released a podcast featuring IASB Chair Andreas Barckow, IASB Vice-Chair Linda Mezon-Hutter, and Executive Technical Director Nili Shah dis-cussing deliberations at the February 2023 IASB meeting.

High­lights of the podcast include dis­cus­sions on:

  • Effective date for amendments related to supplier finance arrangements project;
  • Milestones in lack of exchangeability project;
  • Stake­holder feedback in the post-implementation review of IFRS 9 — Impairment;
  • Tentative decisions in the financial instruments with characteristics of equity;
  • Progress made in the rate-regulated activities project;
  • Proposals in the business combinations — disclosures, goodwill and impairment project; and
  • Developments in the dynamic risk management project.

The podcast can be accessed through the press release on the IASB website.

Agenda for March 2023 CMAC meeting

24 Feb 2023

Representatives from the International Accounting Standards Board (IASB) will meet with the Capital Markets Advisory Council (CMAC) in a hybrid meeting on 9 March 2023. The agenda for the joint meeting has been released.

The full agenda for the meeting is sum­marised below:

Thursday, 9 March 2023 (09:00-15:00)

  • Welcome
  • IASB and ISSB update
  • Primary financial state­ments
    • Transition and the effective date of the forthcoming IFRS Accounting Standard General Presentation and Disclosures;
    • Expected benefits and costs for users of financial statements to help develop the Effects Analysis that will be published with the Accounting Standard.
  • Business Combinations — Disclosures, Goodwill and Impairment
    • Impairment test of cash-generating units containing goodwill
  • Equity Method
    • IASB tentative decisions
    • Account for gains and losses from transactions with an associate

Agenda papers for this meeting are available on the IASB website.

Agenda for the March 2023 DPOC meeting

24 Feb 2023

The Due Process Oversight Committee (DPOC) will hold its 1 March 2023 in Tokyo, Japan.

The agenda for the DPOC meeting is sum­marised below.

Wednesday, 1 March 2023

  • Mon­i­tor­ing com­pli­ance with due process:
  • Update reports on IASB, IFRS Interpretations Committee and ISSB activities
  • Developing due process procedures
    • SASB Standards taxonomy due process
  • DPOC matters
    • Interim approach to ISSB taxonomy consultative group
    • DPOC correspondence — update since papers distributed
    • Summary

Agenda papers for the meeting are available on the IASB's website.

Deloitte Partner appointed Acting EFRAG FR TEG Chair

24 Feb 2023

The European Financial Reporting Advisory Group (EFRAG) has announced the new composition of its Financial Reporting Technical Expert Group (EFRAG FR TEG).

Deloitte Partner Jens Berger, Head of Deloitte’s Frankfurt IFRS and Corporate Reporting Centre of Excellence, has been appointed Acting EFRAG FR TEG Chair. EFRAG is currently looking for a new EFRAG FR TEG Chair, as the former Chair has become Chair of EFRAG's Sustainability Reporting TEG.

Please click to access the announcement on the EFRAG website.

IPSASB event on public sector sustainability reporting

24 Feb 2023

On 4 April 2023, the International Public Sector Accounting Standards Board (IPSASB), the International Federation of Accountants (IFAC), and Accountancy Europe will host an event 'Equipping the Public Sector for Sustainability Action: Advancing transparency, comparability, and accountability with sustainability reporting' in Brussels.

The event will feature an interactive discussion around key ideas the IPSASB is exploring related to the development of sustainability standards and the resources necessary to deliver the urgently needed public sector reporting guidance.

Please click for more information and registration on the IPSASB website.

Note: A recording of the event was made available on 26 April 2023.

Japan Financial Services Agency to host International Conference on Sustainability Disclosure

22 Feb 2023

In the context of the IFRS Foundation Trustees meeting in Tokyo next month, the Japan Financial Services Agency (FSA) will host an International Conference on Sustainability Disclosure in Tokyo on 3 March 2023.

The conference will include participants from various standard-setting and regulatory organisations, including Erkki Liikanen (IFRS Foundation Trustees Chair) and Emmanuel Faber (ISSB Chair). The following are the topics to be discussed:

  • Approaches for developing sustainability disclosure frameworks
  • Path to global baseline: current progress and looking ahead.
  • Expectation for the next standard-setting agenda.

The event is free of charge and will be hosted online and in person. For more information, see the press release on the IFRS Foundation’s website.

ISSB issues podcast on latest Board developments (February 2023)

22 Feb 2023

The IFRS Foundation has released a podcast discussing highlights from the February 2023 ISSB meeting. The podcast is hosted by ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd.

Highlights of the podcast include discussions on:

  • sources of guidance to identify sustainability-related risks and opportunities and disclosures;
  • the effective date of the forthcoming standards;
  • reference to ESRS and GRI standards;
  • proportionality and support for those applying IFRS S1 and IFRS S2; and
  • future work.

The podcast can be accessed through the press release on the IFRS Foundation’s website.

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