Key changes proposed in the consultation Exposure Draft include:

• simplifying the standards and making them more relevant for all participants in the valuation process;
• introducing new features to enhance the user experience;
• a full update to IVS 500 Financial Instruments;
• adding new chapters on data and inputs (IVS 104) and valuation models (IVS 105); and
• updating mandatory elements and expanding the scope of work requirements, including Environmental, Social, and Governance (ESG) considerations.

The consultation documents and feedback form are available on the IVSC website. The IVSC is also hoting webinars in different time zones to provide more insights and answer constituents' questions.

High­lights of the podcast include dis­cus­sions on:

• Supplementary meeting on international tax reform and the OECD pillar two model rules.
• Targeted improvements recognizing provisions and the existence of present obligations in IAS 37;
• Decisions and developments related to the rate-regulated activities, equity method, and the dynamic risk management projects;
• Decisions on proposed disclosure requirements in the draft Accounting Standard on Subsidiaries without Public Accountability: Disclosures project;
• Progress on the financial instruments with characteristics of equity project.

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

Background

The ISSB consultation on agenda priorities was first discussed in July 2022 and it was decided that the ISSB will develop and pursue its initial work plan subject to public consultation on agenda priorities.

The ISSB decided to publish a request for information to gather views on:

1. the strategic direction and balance of ISSB activities;
2. the suitability of proposed criteria for assessing the priority of sustainability-related matters (including topics, industries and activities) that could be added to the ISSB’s work plan; and
3. a proposed list of sustainability-related matters (including topics, industries and activities) that could be added to the ISSB’s work plan.

Content of the request for information

The questions for respondents are structured as follows:

The request for information also encourages respondents to share other comments on the ISSB’s activities and work plan.

Comments on the request for information are requested by 1 September 2023.

Additional information

The following additional information is available on the IFRS Foundation website website and on IAS Plus:

• Press release on the IFRS Foundation website
• Request for information on the IFRS Foundation website
• iGAAP in Focus newsletter
• Our IAS Plus project page on the ISSB consultation on agenda priorities

This compilation only includes one agenda decision, Definition of a Lease — Substitution Rights which relates to IFRS 16 Leases.

For more information, see the press release and compilation on the IASB website.

The following topics were discussed:

Dynamic Risk Management: The IASB discussed risk mitigation intention and the construction of the benchmark derivatives, as well as further considerations on the current net open risk position. The IASB supported all staff recommendations and will continue its discussion on the topics identified in the project plan.

Financial Instruments with Characteristics of Equity: The IASB voted in favour of the staff recommendations related to proposed amendments to IFRS 7 in relation to an entity’s issued equity instruments, additional disclosures related to classification and presentation topics, and proposed transition requirements.

Rate-regulated Activities: The IASB discussed long-term performance incentives and derecognition. The IASB decided that the final Accounting Standard retains the proposal that an entity is required to estimate the amount of a long-term performance incentive and determine the portion of that estimated amount that relates to the reporting period using a reasonable and supportable basis. The IASB also supported several staff recommendations with regard to the derecognition of regulatory assets and liabilities.

Maintenance and consistent application: The IASB did not object to the IFRS Interpretations Committee Agenda Decision ‘Definition of a Lease—Substitution Rights (IFRS 16)’ and discussed the March 2023 IFRIC Update.

Equity Method: The IASB decided that an entity should recognise a deferred tax asset (or liability) on the difference between its share of the fair value and the tax base of an associate’s identifiable assets and liabilities. The IASB also decided to move the project to its standard-setting work plan; work towards publishing an exposure draft as the next due process step; continue to use the expertise of its advisory bodies instead of establishing a consultative group; and update the project’s objective.

International Tax Reform—Pillar Two Model Rules: The IASB decided to instigate narrow-scope standard-setting to amend Section 29 Income Tax of the IFRS for SMEs Accounting Standard for the upcoming amendment to IAS 12 with regard to international tax reform.

Provisions—Targeted Improvements: The IASB discussed an amendment of the liability definition and the requirements and guidance supporting the present obligation recognition criterion, applying concepts added to the Conceptual Framework in 2018. No decisions were made.

Business Combinations under Common Control (BCUCC): The IASB discussed the project direction and the measurement method to apply to a BCUCC. No decisions were made.

Post-implementation Review of the IFRS 9 impairment requirements: The IASB approved the publication of the Request for Information (RFI) and agreed with a 120-day comment period for the RFI.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures: The IASB made decisions on aspects of the proposed disclosure requirements and language in the draft Standard.

An analysis of how the IASB’s work plan has changed as a result of the meeting is available here.

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

The SCC discussed two topics:

• Capacity building. Participants received an update on the capacity building programme. It was acknowledged that capacity building is required for everyone globally, but that there needs to be a specific focus on the Global South. Discussion by participants included questions on the need for guidance for emerging markets and smaller entities, and how SCC members can contribute as partners to the capacity building programme.
• Agenda consultation. The agenda consultation will seek consultation on the ISSB’s agenda priorities beyond climate, informing the broader 2024-6 work plan. SCC participants asked about the development of digital taxonomies and XBRL, the scope of, and delineation between proposed thematic topic areas, connectivity between the Boards, and leveraging existing work that has been done to inform future research.

Please click to access the full summary on the IFRS Foundation website.

Below is an analysis of all changes made to the work plan since our last analysis on 27 March 2023.

Stan­dard-set­ting projects

• Climate-related disclosures — The IFRS Sustainability Disclosure Standard is now expected in June 2023 (previously Q2 2023).
• Equity Method — This project was moved from the research agenda to the standard-setting agenda and is now in the exposure draft phase, no expected date given.
• Financial Instruments with Characteristics of Equity — An expect date for the exposure draft is no longer available (previously H2 2023).
• General Sustainability-related Disclosures — The IFRS Sustainability Disclosure Standard is expected in June 2023 (previously Q2 2023).
• Second Comprehensive Review of the IFRS for SMEs Accounting Standard — The feedback on the exposure draft is now expect in June 2023 (previously Q2 2023).

Main­te­nance projects

• Amend­ments to the clas­si­fi­ca­tion and mea­sure­ment of financial in­stru­ments— Feedback on the exposure draft is now expected in Q3 2023 (previously H2 2023).
• Amendments to the IFRS for SMEs Accounting Standard — International Tax Reform — Pillar Two Model Rules — This project has been added to the work plan with an exposure draft expected in June 2023.
• Annual Improvements to IFRS Accounting Standards — Six projects have been added to the work plan with an exposure draft expected in Q3 2023:
  
  • Cost Method (Amendments to IAS 7)
  • Credit Risk Disclosures (Amendments to Illustrative Examples accompanying IFRS 7)
  • Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
  • Gain or Loss on Derecognition (Amendments to IFRS 7)
  • Hedge Accounting by a First-Time Adopter (Amendments to IFRS 1)
  • Transaction Price (Amendments to IFRS 9).
• International Tax Reform — Pillar Two Model Rules — The IASB considered the feedback received and will now publish a final amendment in May 2023.
• Lack of Exchangeability (Amendments to IAS 21) — The IFRS Accounting Standard amendment is now expect in July 2023 (previously Q3 2023).

Research projects

• Extractive Activities — The decision on the project direction is expected in July 2023 (previously Q3 2023).
• Post-implementation Review of IFRS 15: Revenue from Contracts with Customers — The request for information is now expected in June 2023 (previously Q2 2023).

The above is a faithful com­par­i­son of the IASB and ISSB work plan at 27 March 2023 and 2 May 2023. For access to the current work plan at any time, please click here.

The agenda for the meeting is summarised below:

Agenda papers from this meeting are available on the IFRS Foundation website.