The following topics were discussed

Dynamic Risk Management: The IASB discussed the staff’s preliminary view on the scope of the Dynamic Risk Management (DRM) model, that is the type of risk management activities for which the application of the DRM model would be appropriate and provide useful information. The staff presented their view on what would be the relevant characteristics of a risk management strategy and activities can be inferred from the elements of the DRM model, such as the Current Net Open Position and the Risk Mitigation Intention, as well as the business activities that give rise to the interest rate risk exposure. The IASB did not make any decision at this meeting.

Rate-regulated Activities: The IASB made decisions on the proposals in the Exposure Draft Regulatory Assets and Regulatory Liabilities, in particular on the direct (no direct) relationship concept and the boundary of a regulatory agreement.

Maintenance and consistent application: The purpose of this session was to ask IASB members whether they object to several agenda decisions that have been published by the IFRS Interpretations Committee. No IASB member had any objections to the agenda decisions.

Equity Method: The IASB decided that its previous tentative decisions on application questions for investments in associates also apply to parents that elect to use the equity method to investments in subsidiaries in their separate financial statements, and to investments in joint ventures.

Amendments to the Classification and Measurement of Financial Instruments: The IASB discussed feedback on the Exposure Draft Amendments to the Classification and Measurement of Financial Instruments, in particular feedback received about elements of interest that are consistent with a basic lending arrangement and contractual terms that change the timing or amount of contractual cash flows. The IASB did not make any decisions.

Primary Financial Statements: The IASB discussed sweep issues that arose when the staff balloted the new IFRS 18 Presentation and Disclosure in Financial Statements. The IASB decided to require an entity to present a line item for cost of sales separately from any other expenses classified by function in the statement of profit or loss only if the entity classifies operating expenses by function that include cost of sales. The IASB also decided to clarify that for the statement of financial position an entity uses the characteristics of duration and timing of recovery and settlement to classify assets and liabilities as either current or non-current and the characteristic of liquidity to classify assets and liabilities by order of liquidity; and the characteristics of nature and function to aggregate assets and liabilities into separate line items. Other characteristics, like duration, liquidity, measurement basis, type and tax effects, assist an entity identifying the nature or function of the assets and liabilities. The IASB furthermore decided to confirm that an entity that presents one or more function line item will be required to disclose in a single note the amounts for these expenses that are included in each line item in the operating category only.

Second Comprehensive Review of the IFRS for SMEs Standard: The IASB continued the redeliberation of its proposals in the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard. The IASB decided to align the Standard with IFRS 15; clarify how an entity applies the rebuttable presumption in paragraph 9.5 of the Standard; retain the requirements in the Standard for recognising development costs for intangible assets and for borrowing costs for qualified assets; and expose for public comment a proposal to align the Standard with Supplier Finance Arrangements (which amended IAS 7 and IFRS 7) and Lack of Exchangeability (which amended IAS 21).

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures: The IASB decided to make amendments to the sections related to IFRS 2, IFRS 3, IFRS 7, IFRS 12, IFRS 15, IFRS 16, IAS 2, IAS 7, IAS 12, IAS 19, IAS 29, IAS 37 and IAS 41 to clarify the disclosure requirements and make them more consistent across the Standards.

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