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.

The following topics were discussed:

Maintenance and consistent application

The IASB deferred the final decisions on its project on Supplier Finance Arrangements to the February meeting. The staff recommended that entities be required to apply the amendments for annual reporting periods beginning on or after 1 January 2025, with earlier application permitted. However, some IASB members preferred an earlier effective date. 

Equity Method

IFRS 10 requires that when a parent loses control of a subsidiary it recognises a gain or loss. However, if the subsidiary is sold to an associate or joint venture of the parent, IAS 28 requires that the gain be limited to the  extent of the unrelated investors’ interests. This is perceived as a conflict. The IASB discussed four ways of addressing the issue and decided to continue exploring two of the alternatives in a future decision-making session.

Business Combinations—Disclosures, Goodwill and Impairment

In September 2022, the IASB tentatively decided to exempt entities from some disclosure requirements but did not establish the conditions for that exemption. The IASB decided that the exemption be based on whether disclosing the information could be expected to prejudice seriously any of the entity’s objectives for a business combination. Application guidance would set out the factors that would need to be considered when assessing if the exemption applies and entities would need to disclose the reason for applying the exemption.

The IASB also decided that, subject to the proposed exemption, an entity be required to disclose quantitative information about total expected synergies disaggregated by nature (e.g. total revenue, total cost synergies), when the synergistic benefits are expected to start, and how long they are expected to last.

Primary Financial Statements

The IASB decided:

• Disaggregation: not requiring disaggregation of material information in relation to information about the nature of operating expenses that are included in a function line item in the statement of profit or loss; clarify the requirements for how disaggregated amounts are labelled (described); add a requirement that any line items presented in the statement(s) of financial performance and the statement of financial position must be recognised and measured in accordance with IFRS Accounting Standards but not prohibit the disaggregation of income and expenses in the notes to the financial statements into components not recognised and measured in accordance with IFRS Accounting Standards; and extend the proposals in the ED for the label ‘other’ to be used only if no more informative label can be found
• Comprehensive income: withdraw the proposal to relabel the two categories of other comprehensive income as remeasurements permanently reported outside profit or loss and income and expenses to be included in profit or loss in the future
• Statement of cash flows: confirm that entities other than entities with specified main business activities classify interest received as cash flows arising from investing; and confirm that entities with specified main business activities classify dividends received (other than dividends received investments accounted for using the equity method), interest paid and interest received in a single category of the statement of cash flows (either as cash flows from operating, investing or financing activities)

IFRS Accounting Taxonomy

In November 2022, the IASB published the Proposed IFRS Taxonomy Update—Lease Liability in a Sale and Leaseback and Non-current Liabilities with Covenants. The purpose of this meeting was to summarise the feedback received on the PTU and set out the next steps in the publication of the Update. As a next step, the IASB will begin the balloting process for these updates.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures

The IASB decided to proceed with the proposal to include reduced disclosure requirements for IFRS 1. The IASB also decided that when an eligible subsidiary that elects, revokes an election or is no longer eligible to apply the Standard, it does not apply the requirements in IAS 8 on changes in accounting policies. Neither is it required to present a third statement of financial position. Finally, the IASB confirmed its proposal to consider amendments to the Standard when it publishes an exposure draft of a new or amended IFRS Accounting 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.

Highlights of the podcast include discussions on:

• discussions on disclosure requirements relating to the goodwill and impairment project;
• redeliberations on the project on subsidiaries without public accountability;
• stakeholder outreach in the primary financial statements project;
• new developments in the project on supplier finance arrangements;
• a summary of discussions on the equity method project; and
• an update on IFRS Accounting Taxonomy.

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

During the meeting, participants offered comments on the papers to be discussed at the December ISSB meeting with a special focus on the proposed relief for companies in reporting their Scope 3 greenhouse gas emissions and on the consultation on agenda priorities. In addition, the participants also discussed the ongoing role of the Jurisdictional Working Group moving into 2023.

For more information, see the summary on the IFRS Foundation’s website.

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 (1–5): The ASAF members discussed the proposed topics for the next ASAF meeting and agreed to include the topics suggested. A discussion on the relationship between the work of the IASB and the ISSB was also suggested. In addition, an ad-hoc ASAF meeting was requested for the first quarter of 2023 to discuss the IASB proposed narrow-scope amendments to IAS 12.
• Primary financial statements (6–9): The ASAF members were updated on the results of the targeted outreach held between September and December 2022.
• Accounting for Variable Consideration (10–14): EFRAG presented research on the accounting for variable consideration. The research considered when to recognise a liability within the scope of IAS 32 and IFRS 9 for variable consideration that depends on the purchaser’s future actions and whether and when to update the cost measurement of an acquired asset for changes in estimates of variable consideration.
• Post-implementation review of IFRS 15 (15–27): ASAF members were asked for their overall views on IFRS 15, application matters, transition matters, and the benefits and costs of implementing and applying the standard.
• Business combinations under common control (28–47): The staff provided an update on the project and asked ASAF members’ views on particular aspects of the staff’s analysis on selecting the measurement method(s) to apply to business combinations under common control.
• Provisions — Discount rates (48–64): ASAF members provided views on discount rates for provisions and whether the IASB should amend IAS 37 to specify the treatment of non-performance risk as well as disclosure of information about rates used to discount provisions.
• Equity Method (65–72): ASAF members were provided with an update on the project and were asked for views on four alternatives identified to answer the application question around IFRS 10 and IAS 28.

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

Specifically, IASB member Rika Suzuki takes a looks into how companies could disclose better information about business combinations and whether to retain the impairment-only model to account for goodwill or to explore reintroducing amortisation of goodwill.

For more information, see the press release and ‘In Brief’ article on the IFRS Foundation’s website. In addition, a Japanese translation of the article is available.

The Advisory Council is the formal advisory body to the Trustees, the IASB, and the ISSB. It advises the IFRS Foundation on its strategic direction, technical work plan and priorities.

The Trustees have agreed to a temporary expansion of the Advisory Council to reflect the recent creation of the ISSB that has led to an expanded remit of the Advisory Council. Among the newly appointed organisations are the Organisation for Economic Co-operation and Development (OECD), Principles for Responsible Investment (PRI), and the United Nations (UN).

Please see the press release on the IFRS Foundation website for more information. A full list of current members is available here.

The focus of the webinar, which accompanies the December 2022 call for papers on IFRS 9 hedge accounting requirements, will be on potential research on the usefulness of the hedge accounting disclosure requirements for investors. IASB technical staff will be presenting in the webinar and there will be an opportunity for academics to ask questions.

Please click for more information and registration on the IFRS Foundation website.

Below is an analysis of all changes made to the work plan since our last analysis on 19 December 2022.

Stan­dard-set­ting projects

• Disclosure Initiative — Targeted Standards-level Review of Disclosures  — The project summary is now expected in March 2023 (previously Q1 2023).
• Second comprehensive review of the IFRS for SMEs Accounting Standard — Feedback on the exposure draft is expected in Q2 2023 (previously H1 2023).

Main­te­nance projects

• Amend­ments to the clas­si­fi­ca­tion and mea­sure­ment of financial in­stru­ments — This project exposure draft is now expected in March 2023 (pre­vi­ously Q1 2023).
• International Tax Reform — Pillar Two Model Rules — Feedback on the exposure draft is expected by April 2023.
• Lack of ex­change­abil­ity (amend­ments to IAS 21) — Final amend­ments to IAS 21 are expected in H2 2023 (previously H1 2023).

Research projects

• Equity Method— A decision on the project direction is expected in April 2023.
• Extractive Activities — A decision on the project direction is now expected in H2 2023 (previously Q2 2023).
• Post-implementation Review of IFRS 15 — Request for information is expected in Q2 2023 (previously H1 2023).
• Post-implementation review — IFRS 9 (Classification and measurement) — Removed from the work plan since the release of the final project report and feedback statement concluded the project on 21 December 2022.

Strategy & governance projects

• ISSB Consultation on Agenda Priorities — Request for information is expected in Q2 2023 (previously H1 2023).

Other projects

• IFRS Sustainability Disclosure Taxonomy — The proposed IFRS Sustainability Disclosure Taxonomy is expected in H2 2023.

The above is a faithful com­par­i­son of the IASB and ISSB work plan at 19 December 2022 and 30 January 2023. For access to the current work plan at any time, please click here.

In the draft comment letter, EFRAG welcomes the IASB’s efforts to address the concerns of stakeholders about the implications for income tax accounting resulting from jurisdictions implementing the OECD rules.

EFRAG supports the IASB’s proposal to a temporary exception to the requirements in IAS 12. However, EFRAG will engage with its constituents during the outreach of the exposure draft to ascertain the usefulness of the proposed targeted disclosures for users and to assess the feasibility (including costs) for preparers.

Comments on EFRAG's draft comment letter are requested by 27 February 2023. For more information, see the press release and the draft comment letter on the EFRAG website.