Pre-meeting summaries for the July 2023 IASB meeting
24 Jul 2023
The IASB will meet in London from 25-27 July 2023. 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:
Dynamic Risk Management (DRM): The IASB will discuss the potential designation of hedged exposures in the current net open risk position, and the implication of designating non-linear derivatives and ‘off-market’ derivatives in the DRM model.
Maintenance and consistent application: The IASB will explore possible narrow-scope amendments to IFRS 9 with regard to the application of the ‘own use’ exception to some physical power purchase agreements (PPAs) and discuss the June 2023 IFRIC Update.
Equity Method: The IASB will decide how to answer an application question relating to the assessment of impairment and whether to expand the project’s scope for five of the application questions that were not selected but are considered resolved by the IASB’s tentative decisions.
Business Combinations—Disclosures, Goodwill and Impairment: The IASB will make decisions about which improvements to the impairment test to propose in the upcoming Exposure Draft and complete its discussions on proposals to improve information disclosed about business combinations.
Extractive Activities: The IASB will receive a summary of feedback on its Extractive Activities research project. The feedback relates to suggestions to improve disclosures about an entity’s exploration and evaluation expenditure and activities that the IASB is exploring.
Primary Financial Statements (PFS): The IASB will discuss whether to re-expose the proposals in the Exposure Draft General Presentation and Disclosures. The IASB will also discuss transition requirements and the effective date of the new Standard, as well as the due process requirements. The staff recommends that the IASB require an entity to apply the new Standard for annual periods beginning on or after 1 January 2027 with early application permitted and to apply the new Standard retrospectively in accordance with IAS 8.
Provisions—Targeted Improvements: The IASB will discuss stakeholder feedback on discount rates for provisions within the scope of IAS 37—specifically, feedback on whether the risks reflected in the rate should include non-performance risk, and whether IAS 37 should specify the types of costs to include in estimating that expenditure required to settle a present obligation in measuring a provision.
Subsidiaries without Public Accountability—Disclosures: The IASB will decide on the staff recommendation to align the effective date of the new Standard with the PFS Standard (i.e. 1 January 2027) and to permit earlier application of the new Standard.
Our pre-meeting summaries is available on our July meeting notes page and will be supplemented with our popular meeting notes after the meeting.
