2023

GRI establishes 'Sustainability Innovation Lab'

09 Nov 2023

The Global Reporting Initiative (GRI) has announced the upcoming launch of the Sustainability Innovation Lab (SIL), in partnership with the IFRS Foundation. Through the SIL, representatives of GRI, the ISSB and other key stakeholders will collaborate to identify emerging sustainability disclosure topics, developing concepts, best practices and data-driven solutions.

The SIL, which will be based in Singapore, will also provide capacity building within supply chains that are being asked to meet new information demands. Multi-stakeholder working groups are being established to focus on four priority areas: digital taxonomies, audit and assurance, smaller companies, and public sector reporting.

Please click for more information in the IFRS Foundation press release.

First meeting of the transition implementation group on IFRS S1 and IFRS S2

08 Nov 2023

The inaugural meeting of the 'Transition Implementation Group on IFRS S1 and IFRS S2' (TIG) will take place on 21 November 2023. The TIG was set up to inform the ISSB about potential implementation questions that could arise when companies implement the new standards IFRS S1 'General Requirements for Disclosure of Sustainability-related Financial Information' and IFRS S2 'Climate-related Disclosures'.

Following introductory remarks, the TIG will discuss operating procedures and TIG member observations on implementation to date.

Please click to access the agenda and the paper for the meeting on the IFRS Foundation website.

IFRS Foundation publishes ninth compilation of IFRS Interpretations Committee agenda decisions

07 Nov 2023

The IFRS Foundation has issued “Compilation of Agenda Decisions — Volume 9” which contains all the agenda decisions made by the IFRS Interpretations Committee from May 2023 to October 2023.

This com­pi­la­tion includes three agenda decisions:

  • Premiums Receivable from an Intermediary (IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments).
  • Homes and Home Loans Provided to Employees.
  • Guarantee over a Derivative Contract (IFRS 9).

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

Pre-meeting summaries for the November 2023 IASB meeting

07 Nov 2023

The IASB will meet in London on 13-15 November 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:

Business Combinations under Common Control: The IASB will vote on the staff recommendation to discontinue the project. Depending on the decision, the IASB will be asked which next steps the staff should take.

Equity Method: The IASB will decide whether to propose improvements to the disclosure requirements for investments in joint ventures, and when a parent elects to use the equity method to account for its investments in subsidiaries in separate financial statements. The IASB will also make decisions on transitional provisions to be proposed in the upcoming exposure draft.

Amendments to the Classification and Measurement of Financial Instruments: The staff will present the feedback on Exposure Draft Amendments to the Classification and Measurement of Financial Instruments. The staff recommends to finalise the proposals on derecognition of financial liabilities through electronic transfer and the proposed disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income.

Primary Financial Statements: The IASB will discuss sweep issues related to subtotals and categories, and aggregation and disaggregation that arose during the balloting process of IFRS 18 Presentation and Disclosure in Financial Statements.

Provisions—Targeted Improvements: The staff recommends that the IASB develop proposals to amend IAS 37 to specify more precisely the basis on which an entity determines the discount rate it uses in measuring a provision and to specify that an entity is required to use a rate that reflects the time value of money—represented by a risk-free rate—with no adjustment for non-performance risk.

Post-implementation Review of IFRS 9—Impairment: The IASB will discuss a summary of the feedback received in response to its Request for Information Post-implementation Review—IFRS 9 Financial Instruments—Impairment. The staff plans to discuss the following topics in the first half of 2024: general approach to recognising expected credit losses (ECL); determining significant increases in credit risk; measuring ECL; purchased or originated credit-impaired; interaction of impairment requirements with other requirements; and credit risk disclosures.

Second comprehensive review of the IFRS for SMEs Standard: The IASB will continue the redeliberation of its proposals in the ED Third edition of the IFRS for SMEs Accounting Standard. The staff recommends that the IASB aligns the definition of joint control in Section 15 of the Standard with IFRS 11, retains the three classifications of joint arrangements in Section 15 of the Standard and aligns Section 15 of the Standard with IFRS 11:23. The staff also recommends to retain the simplification in the IFRS for SMEs for measuring the obligation and the related cost of defined benefit plans.

Updating the Subsidiaries without Public Accountability: Disclosures Standard: The staff will set out the IASB’s project plan for the preparation of a “Catch-up Exposure Draft” following the issue of the forthcoming IFRS Accounting Standard Subsidiaries without Public Accountability: Disclosures.

Our pre-meet­ing summaries is available on our November meeting notes page and will be sup­ple­mented with our popular meeting notes after the meeting.

November 2023 ISSB meeting agenda posted

06 Nov 2023

The ISSB has posted the agenda for its meeting, which will be held in Beijing on 15–16 November 2023. The Board will discuss the ISSB consultation on agenda priorities and the feedback on the proposed IFRS Sustainability Disclosure Taxonomy.

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.

Summary of the October 2023 ITCG meeting

06 Nov 2023

The IASB has published a summary of the IFRS Taxonomy Consultative Group (ITCG) meeting held on 12-13 October 2023.

The ITCG discussed the following topics:

  • Update on the digital reporting activities and taxonomy workplan
  • IFRS Accounting Taxonomy — Subsidiaries without public accountability: Disclosures
  • Proposed IFRS Sustainability Disclosure Taxonomy
  • EFRAG: ESRS XBRL Taxonomy
  • IFRS Accounting Taxonomy — IFRS 18

The meeting summary is available on the IASB website.

EFRAG draft comment letter on proposed annual improvements

06 Nov 2023

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's proposed amendments to five standards as result of its annual improvements project.

In its draft comment letter, EFRAG welcomes the package of the annual improvements included in the ED and agrees with the majority of the proposed amendments. In EFRAG's view, they would improve consistent application and understandability of the IFRS Accounting Standards.

However, EFRAG disagrees with the IASB's proposed amendment to IFRS 9 on derecognition of lease liabilities and recommends a reconsideration of the proposed amendment to IFRS 10 on de facto agents.

Comments on EFRAG's draft comment letter are requested by 28 November 2023. For more information, see the press release and the draft comment letter on the EFRAG website.

IFRS Foundation proposes further updates to IFRS Taxonomy 2023

06 Nov 2023

The IFRS Foundation has issued a proposed IFRS Taxonomy Update, 'IFRS Accounting Taxonomy 2023 — Proposed Update 2 'Common Practice for Financial Instruments, General Improvements and Technology Update''.

The proposed changes reflect:

    • common reporting practice relating to the presentation of financial instruments in digital financial statements prepared by banking institutions using IFRS Accounting Standards; 
    • general improvements; and
    • updates to the IFRS Accounting Taxonomy’s technology.

    Details on the proposed changes are available in the press release on the IFRS Foundation website and in proposed update itself. Comments are requested by 5 January 2024.

    November 2023 IASB meeting agenda posted

    06 Nov 2023

    The IASB has posted the agenda for its next meeting, which will be held in its offices in London on 13–15 November 2023. There are eight topics on the agenda.

    The Board will discuss the following:

    • IFRS 9 Amendments to classification and measurement
    • Post-implementation review of IFRS 9 — Impairment
    • Second comprehensive review of the IFRS for SMEs
    • Equity method
    • Business combinations under common control
    • Provisions — Targeted improvements
    • Primary financial ftatements
    • Disclosure initiative — Subsidiaries without public accountability: Disclosures

    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.

    New research on materiality

    02 Nov 2023

    The Australian Accounting Standards Board (AASB) and the UK Financial Reporting Council (FRC) have published research reports on the topic of materiality.

    The AASB' research is a response to the IASB's April 2022 call for research on materiality, urging a collaborative approach between academics and standard-setters:

    The FRC's research looks at how companies can improve their corporate reporting by taking a more focused, strategic approach to assessing materiality. Please click to access Materiality in practice: applying a materiality mindset on the FRC website.

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