The following topics were discussed:

Sources of guidance to identify sustainability-related risks and opportunities and disclosures

The ISSB decided to amend the references to ‘other standard-setting bodies whose requirements are designed to meet the needs of users of general purpose financial reporting’ and ‘entities that operate in the same industries or geographies’ to state that preparers may consider such sources, both in the identification of sustainability-related risks and opportunities and in the identification of disclosures about those risks and opportunities, but that such consideration is not a requirement. The ISSB also decided to amend the sources of guidance to explicitly state that preparers may consider the GRI Standards and ESRS to identify disclosures about sustainability-related risks and opportunities that meet the objectives of [draft] S1. However, this reference will be made in an appendix to IFRS S1.

Effective date

The ISSB decided to require that both IFRS S1 and IFRS S2 are effective for annual reporting periods beginning on or after 1 January 2024. The ISSB also confirmed that early application of IFRS S1 and IFRS S2 is permitted, but only if an entity applies both IFRS S1 and IFRS S2 at the same time. An entity will be required to disclose that it applies IFRS S1 and IFRS S2 early. ISSB members also voted in favour of the staff recommendation related to the applicable timing of the transitional relief from the requirement for an entity to report their sustainability-related financial disclosures at the same time as their financial statements; from the requirement for an entity to measure Scope 1, Scope 2, and Scope 3 emission in accordance with the GHG Protocol Corporate Standard, when they are doing so for the first time by applying IFRS S2; and from the requirement for an entity to disclosure its Scope 3 GHG emissions.

Due process and permission to ballot

The staff summarised the due process steps undertaken throughout the General Sustainability-related Disclosures and the Climate-related Disclosures projects and the ISSB confirmed that it is satisfied that the mandatory due process steps have been met in finalising redeliberations of [draft] S1 and [draft] S2. The ISSB also granted permission for the staff to begin the balloting process for IFRS S1 and IFRS S2 and none of the ISSB members indicated that they intend to dissent from the publication of IFRS S1 or IFRS S2.

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

The ITCG will discuss the following topics:

• IASB digital financial reporting strategy update
• IFRS Accounting Taxonomy
  • digital representation of subtotals and categories in the statement of financial performance
  • feedback on IFRS Accounting Taxonomy 2022 Proposed Update 1
  • financial instruments common practice review
• IFRS Sustainability Disclosure Taxonomy
  • general update
  • facilitating use in jurisdictions which do not permit extensions

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

The full agenda for the meeting is summarised below:

Agenda papers for this meeting are available on the IFRS Foundation's website.

During last week's meeting, the International Sustainability Standards Board (ISSB) completed the redeliberation of its two proposed standards IFRS S1 and IFRS S2 and published a corresponding press release. The only steps left now are the drafting of the adjustments and additions made and the formal balloting of the revised text versions. The final standards are to be published in June 2023. The date of first-time application for IFRS S1 and S2 is 1 January 2024.

Please click to access the IOSCO statement and the FSB letter on the organisations' websites.

The International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) have put out a joint statement echoing the IOSCO statement.

A summary of the agenda is set out below:

Agenda papers for the meeting are available on the IFRS Foundation’s website.

The following topics are on the agenda.

Maintenance and consistent application

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

Supplier Finance Arrangements—The staff recommend 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 staff also recommend that the IASB does not require disclosure of comparative information for prior periods in the annual reporting period it first applies the amendments. Further, the staff recommend that the IASB does not require the disclosure of certain quantitative information in an entity’s first annual financial statements after the amendments become effective.

Lack of Exchangeability—The staff recommend that the IASB proceed with the amendments to IFRS 1 as proposed in the ED but make no amendments to IFRS 13. The staff also recommend that the IASB should require an entity to apply the amendments for annual reporting periods beginning on or after 1 January 2025, with earlier application permitted.

Annual Improvements to IFRS Accounting Standards—The staff recommend that the IASB 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 will discuss which items to include in the upcoming Request for Information (RFI) on the post-implementation review of the IFRS 9 impairment requirements. The staff recommend 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 will redeliberate the proposals on recognition and total allowed compensation in the Exposure Draft Regulatory Assets and Regulatory Liabilities. The staff make specific recommendations with regard to the recognition threshold, enforceability and recognition and performance incentives.

Dynamic Risk Management

The IASB will discuss whether financial assets measured at FVOCI or FVPL are eligible for inclusion in the concept of current net open risk position (CNOP). The staff recommend 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 staff also recommend 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. In addition, the staff recommend 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 will make decisions related to the classification and presentation of issued financial instruments applying IAS 32 and IAS 1. The staff make specific recommendations 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 will decide 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.

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

We have no direct suggestions on the proposed order of prioritisation for reviewing the existing GRI Standards. However, we consider that, as an overall approach, revisions to the GRI Standards should seek to enhance interoperability with those developed and issued by the International Sustainability Standards Board (ISSB) and other significant sustainability standards-setters. We agree that expanding coverage of climate-related matters is important, nevertheless, we also emphasise the increasing importance of social topics to business.

Download the full comment letter here.

High-level speakers from the financial and sustainability reporting sectors provided their views and share thoughts during three panel discussions on major topics:

• Connectivity: Financial and sustainability in corporate reporting
• Financial Reporting: Challenges ahead
• Sustainability Reporting: Trendsetting the future of corporate reporting

Two of the keynote speeches were provided were by the IASB and ISSB Chairs.

A report from the conference as well as recordings can be accessed through the press release on the EFRAG website.

The following topics are on the agenda:

Sources of guidance to identify sustainability-related risks and opportunities and disclosures

The staff recommend that the ISSB amend the references to ‘other standard-setting bodies whose requirements are designed to meet the needs of users of general purpose financial reporting’ and ‘entities that operate in the same industries or geographies’ to state that preparers may consider such sources, both in the identification of sustainability-related risks and opportunities and in the identification of disclosures about those risks and opportunities, but that such consideration is not a requirement. The staff also recommend that the ISSB amend the sources of guidance to explicitly state that preparers may consider the GRI Standards and ESRS to identify disclosures about sustainability-related risks and opportunities that meet the objectives of [draft] S1.

Effective date

The staff recommend that the ISSB require both IFRS S1 and IFRS S2 are effective for annual reporting periods beginning on or after 1 January 2024. The staff also recommend that the ISSB confirm that early application of IFRS S1 and IFRS S2 is permitted, but only if an entity applies both IFRS S1 and IFRS S2 at the same time. An entity would be required to disclose that it applies IFRS S1 and IFRS S2 early. ISSB members are also asked to vote on the staff recommendation related to the applicable timing of the transitional relief from the requirement for an entity to report their sustainability-related financial disclosures at the same time as their financial statements; from the requirement for an entity to measure Scope 1, Scope 2, and Scope 3 emission in accordance with the GHG Protocol Corporate Standard, when they are doing so for the first time by applying IFRS S2; and from the requirement for an entity to disclosure its Scope 3 GHG emissions.

Due process and permission to ballot

In this session, the staff will summarise the due process steps undertaken throughout the General Sustainability-related Disclosures and the Climate-related Disclosures projects and ask the ISSB if it is satisfied that the mandatory due process steps have been met in finalising redeliberations of the [draft] S1 and [draft] S2. The staff will also request permission for the staff to begin the balloting process for IFRS S1 and IFRS S2 and ask whether any ISSB member intends to dissent from the publication of IFRS S1 or IFRS S2. 

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

The Board will discuss the following:

• Maintenance and consistent application
• Post-implementation review of IFRS 9 — Impairment
• Rate-regulated activities
• Dynamic risk management
• Financial instruments with characteristics of equity
• Business combinations — Disclosures, goodwill and impairment

The full agenda for the meeting can be found here. We will post any updates to the agenda, our com­pre­hen­sive pre-meet­ing summaries, as well as observer notes from the meeting on this page as they become available.