The full agenda for the meeting is sum­marised below:

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

A summary of the agenda is set out below:

Agenda papers for the meeting are available on the IFRS Foundation website

Below is an analysis of all changes made to the work plan since our last analysis on 26 September 2023.

Stan­dard-set­ting projects

• Business Combinations — Disclosures, Goodwill and Impairment — An exposure draft is expected in Q1 2024 (pre­vi­ously H1 2024)
• Disclosure Initiative — Subsidiaries without Public Accountability: Disclosures — An IFRS Accounting Standard is now expected in Q2 2024 (previously H1 2024)
• Second Comprehensive Review of the IFRS for SMEs Accounting Standard — The IFRS for SMEs Accounting Standard is now expected in H2 2024 (previously 2024)

Strategy and governance projects

• ISSB Consultation on Agenda Priorities — The feedback on the request for information is now expected in December 2023 (previously Q4 2023)

Main­te­nance projects

• Amend­ments to the IFRS for SMEs — International tax reform — Pillar Two Model Rules — The project has been removed from the work plan due to the issuance of the IFRS for SMEs amendments on 29 September 2023
• Climate-related and Other Uncertainties in the Financial Statements — A decision on the project’s direction is now expected in Q1 2024 (previously H1 2024)
• International Applicability of the SASB Standards — The project is now considered a maintenance project; SASB amendments are expected in December 2023
• Power purchase agree­ments — First feedback on the project resulting from the discussions of the IASB advisory groups will be discussed in December 2023
• Provisions — Targeted Improvements — A decision on the project direction is now expected in December 2023 (previously Q4 2023)

Research projects

• Ex­trac­tive ac­tiv­i­ties — The project summary is now expected in December 2023 (previously Q4 2023)

Other projects

• IFRS Accounting Taxonomy Update — Amend­ments to IAS 12, IAS 21, IAS 7 and IFRS 7 — The proposed IFRS Taxonomy update was published on 5 October 2023 and feedback received will be discussed in Q1 2024
• IFRS Accounting Taxonomy Update — Primary Financial Statements — The proposed IFRS Taxonomy update is now expected in H1 2024 (pre­vi­ously 2024)
• IFRS Sustainability Disclosure Taxonomy — Discussion of the proposed taxonomy feedback is now expected in November 2023 (previously Q4 2023)

The above is a faithful com­par­i­son of the IASB and ISSB work plan at 26 September 2023 and 30 October 2023. For access to the current work plan at any time, please click here.

The following topic was discussed:

• GSSB Work Program 2023-2025: Carol Adams, Global Sustainability Standards Board (GSSB) Chair, and Bastian Buck, GSSB Chief of Standards presented an overview of the GSSB work programme over the next two years.
• International Applicability of the SASB Standards: The staff presented the feedback the ISSB received with regard to the Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards and SASB Standards Taxonomy Updates (Methodology ED). The staff also informed the ISSB about recommendations it made to the SASB Standards Board Advisor Group (SASB Standards Board Advisors) in response to the Methodology ED feedback and the decisions taken by the SASB Standards Board Advisors.
• Supporting implementation of IFRS S1 and IFRS S2: The staff provided an update on the development of educational material on IFRS S1 and IFRS S2. The staff intends to develop educational material that is anchored in and informed by stakeholder feedback. At the same time, the staff thinks it is necessary to find a balance between being proactive and responsive, while also developing a systematic approach to monitor, evaluate and respond to questions being raised by stakeholders. The ISSB was not asked to make any decisions.

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

The topics covered during the meeting were the following (numbers in brackets are ref­er­ences to the cor­re­spond­ing para­graphs of the summary):

• Agenda planning and feedback from previous ASAF meeting (1): The ASAF members discussed topics for its next meeting to be held on 4–5 December 2023 and will include a dis­cus­sion on primary financial statements and climate-related and other uncertainties in the financial statements.
• Rate-reg­u­lated ac­tiv­i­ties (2–14): The ASAF members were updated on the re­de­lib­er­a­tions of the Exposure Draft Reg­u­la­tory Assets and Reg­u­la­tory Li­a­bil­i­tiesand provided comments on whether the IASB’s tentative decisions in Q1 and Q2 2023 on total allowed compensation, recognition, derecognition and measurement help to address stakeholders’ feedback.
• Power purchase agreements (15–26): The ASAF members provided views related to the timely and efficient standard-setting solution to challenges stakeholders have raised concerning power purchase agreements. In particular, they provided views on prevalence and scope.
• Equity method (27–36): The ASAF members discussed the implication of applying the IASB’s tentative decisions for investments in associates related to investments in subsidiaries in separate financial statements and investments in joint ventures.

• Primary financial state­ments (37–42): The ASAF members were updated on the project and provided feedback on whether their jurisdictions have laws or regulations that require entities to provide comparative information for more than one comparative period in their financial statements and whether those laws and regulations permit an entity to provide only one year of comparative information when a new IFRS Accounting Standard is applied.
• IAS 12 Pillar Two — Sharing information on implementation (43–44): The ASAF members provided views on the implementation of the Pillar Two model rules.

A full summary of the meeting is available on the IASB's website.

Specif­i­cally, the podcast discusses:

• Progress towards jurisdictional adoption of IFRS S1 and IFRS S2.
• Progress by partners.
• Update on capacity building and translations.
• Recent meetings with stakeholders.
• Update on October board week.
• Preliminary feedback on the agenda consultation.

For more information and access to the podcast, see the press release on the IFRS Foundation’s website.

Please click to access the Policy Address on the HKSAR website.

Note: In accordance with this directive, the Hong Kong Institute of Certified Public Accountants (HKICPA) has subsequently assumed the role of the sustainability disclosures standard-setter for the accountancy profession in Hong Kong. An alert published on 5 March 2024 sets out how the HKICPA is working together with various organisations to develop a work plan for the development of Hong Kong sustainability disclosure standards. 

As a next step, the HKICPA and relevant regulators will conduct meetings with selected entities to obtain substantive and specific evidence on the challenges they expect to encounter in applying certain ISSB requirements. In addition, the HKICPA plans to establish a dedicated platform for local stakeholders to submit implementation questions regarding IFRS S1 and IFRS S2.

The common enforcement priorities related to financial reporting include:

• Insurance Contracts (IFRS 17)
• Amendments to IAS 12: International tax reform pillar two model rules

The common enforcement priorities related to sustainability reporting include:

• Preparations for the entry into force of the Corporate Sustainability Reporting Directive
• European Commission’s recommendation on transition finance

Special focus will be placed on:

• Impact of climate matters in IFRS financial statements
• Macroeconomic environment
• Refinancing and other financial risks
• Fair-value measurement and disclosures 
• Disclosures relating to article 8 of the Taxonomy Regulation
• Disclosures of climate-related targets, actions and progress
• Scope 3 emissions

Please click for the public statement on enforcement priorities on the ESMA website, providing more background on each of the focus areas.

The report, titled The Heat is On: Disclosures of Climate-Related Matters in the Financial Statements, aims to assist and to enhance the ability of issuers to provide more robust disclosures and create more consistency in how climate-related matters are accounted for in financial statements drawn up in accordance with IFRS. The report focuses on disclosures related to climate matters included in the 2022 annual financial statements of European non-financial corporate issuers.

Although ESMA considers that IFRSs are fit for purpose and provide sufficient basis for issuers to account for and to disclose climate-related matters in financial statements, ESMA also believes that real life illustrations of disclosures may assist issuers to better communicate such impacts and investors and other stakeholders to better understand them and take them into account when making informed decisions.

ESMA expects issuers and auditors to consider the illustrative examples of the report when considering how to assess and disclose the degree to which climate-related matters play a role into the preparation and auditing of IFRS financial statements. ESMA also stresses that the guidance addressing climate impacts is not exhaustive and is developing at a fast pace. Issuers should closely follow the developments of standard setters in this area, and their connection with sustainability reporting.

Please click to access the report on the ESMA website.

The EFRAG Secretariat collects the submissions and forwards them to the EFRAG technical bodies with the aim to publish non-authoritative clarifications to these issues. The publication of first clarifications is expected by the beginning of 2024. Legal interpretations or subsequent changes to the legal framework (CSRD or ESRS) remain in the remit of the European Commission.

Please see the press release on the EFRAG website for additional information.