April

IASB issues podcast on latest Board developments (April 2024)

30 Apr 2024

The IASB has released a podcast hosted by Executive Technical Director Nili Shah featuring IASB Chair Andreas Barckow and IASB Vice-Chair Linda Mezon-Hutter discussing the deliberations held during the April 2024 IASB meeting.

The podcast high­lights some of the projects that were discussed during the meeting, including:

  • Start of a thorough review concerning intangible assets
  • Developments within the climate-related and other uncertainties in the financial statements project
  • Finalisation of the agenda decision pertaining to net-zero commitments
  • Insights into the ongoing post-implementation reviews of IFRS 15 and IFRS 9

The podcast can be accessed here on the IFRS Foun­da­tion website.

April 2024 IASB meeting notes posted

30 Apr 2024

The IASB met in London on 22-25 April 2024. We have posted our comprehensive Deloitte observer notes for all projects discussed during the meeting.

The following topics were discussed:

Post-implementation review (PIR) of IFRS 15 Revenue from Contracts with Customers: The IASB made decisions related to the interaction of IFRS 15 with other IFRS standards and on “determining the transaction price”.

Work plan: The IASB discussed a proposed prioritisation framework to help it consistently prioritise technical projects on its work plan. This is intended to balance capacity demand with supply and enable effective execution of the IASB’s mission. No decisions were made.

Rate-regulated activities: The IASB confirmed the proposals in the exposure draft Regulatory Assets and Regulatory Liabilities on the discount rate, the scope of the new standard in relation to IFRS 17 and consequential amendments to IFRS 3 and IFRS 5.

Maintenance and consistent application: IASB members confirmed that they do not object to two agenda decisions finalised by the IFRS Interpretations Committee and the staff presented the latest IFRIC Update.

Climate-related and other uncertainties in the financial statements: The ASB decided that IFRS Accounting Standards should provide illustrative examples of reporting climate-related and other uncertainties on the financial statements and gave permission to begin balloting the exposure draft for those examples.

Intangible assets: The IASB made the intangible assets project active. It also discussed the initial work the staff will undertake for this project.

Provisions—targeted improvements: The IASB decided to amend certain definitions in IAS 37 and to add requirements and application guidance to IAS 37.

PIR of IFRS 9—impairment: The IASB deliberated the feedback received in response to its request for information Post-implementation Review—IFRS 9 Financial Instruments—Impairment. The IASB decided to classify as low priority the matters relating to financial guarantee contracts and to consider these matters during the next agenda consultation. The IASB also decided to take no action on the matters that arise from applying the impairment requirements in IFRS 9 with the requirements for modification, derecognition and write-off of financial assets, the requirements for loan commitments, the requirements for purchased or originated credit-impaired financial assets, and the requirements in other IFRS standards.

Second comprehensive review of the IFRS for SMEs Accounting Standard: The IASB continued the redeliberations of its proposals in the exposure draft Third edition of the IFRS for SMEs Accounting Standard. The IASB made decisions on disclosure requirements on revenue. The IASB also decided to use plainer language in the new fair value section and to explore measuring intragroup financial guarantee contracts issued for nil consideration by applying the section on provisions and contingencies.

Updating the Subsidiaries without Public Accountability: Disclosures Standard: The IASB decided that the effective date of the amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures in the catch-up exposure draft (ED) should be 1 January 2027. The IASB also gave permission to ballot the catch-up ED.

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

ISSB publishes digital sustainability taxonomy

30 Apr 2024

The International Sustainability Standards Board (ISSB) has published the IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy) to help investors analyse sustainability disclosures efficiently.

The ISSB Taxonomy will enable investors to search, extract and compare sustainability-related financial disclosures provided under the ISSB standards. The ISSB Taxonomy reflects IFRS S1, IFRS S2 and guidance accompanying the standards.

According to the press release, the ISSB Taxonomy has been developed to support the dialogue between entities and investors. It does not introduce new requirements nor does it affect an entity's compliance with the ISSB standards. Instead, the ISSB Taxonomy enables entities to consistently tag information prepared using ISSB standards.

The ISSB Taxonomy is consistent with the IFRS Accounting Taxonomy so that entities can provide a holistic digital financial reporting package to investors. However, the ISSB Taxonomy can also be used with other digital taxonomies.

Please click to access the ISSB Taxonomy via the press release on the IFRS Foundation website. 

Note: In a webinar released on 14 May 2024, ISSB Vice-Chair Sue Lloyd and ISSB staff member Tim Kasim introduce the ISSB Taxonomy, its key features, and its benefits for investors, companies and regulators. Please click here to access the webcast on the IFRS Foundation website.

Updated IASB and ISSB work plan — Analysis (April 2024)

29 Apr 2024

Following the IASB and ISSB meetings this month, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meetings and other developments since the work plan was last revised in March 2024. Several projects have been completed and one new project on intangibles has been added.

Below is an analysis of all changes made to the work plan since our last analysis on 26 March 2024.

Stan­dard-set­ting projects

  • Equity Method — An exposure draft is expected in Q3 2024 (previously H2 2024).
  • Management Commentary — A decision on the project direction is now expected in June 2024 (previously Q2 2024).
  • Primary Financial Statements — This project is removed from the work plan since the issuance of IFRS 18 Presentation and Disclosures in Financial Statements on 9 April.
  • Second Comprehensive Review of the IFRS for SMEs Accounting Standard — The IFRS for SMEs Accounting Standard is now expected in H1 2025 (previously H2 2024).

Main­te­nance projects

  • Addendum to the exposure draft 'Third edition of the IFRS for SMEs Accounting Standard'— Feedback on the exposure draft IASB/ED/2024/2 Addendum to the Exposure Draft 'Third edition of the IFRS for SMEsAccounting Standard' published on 28 March 2024 is expected to begin in Q3 2024.
  • Annual improvements to IFRS Accounting Standards — The following now have the final amendment issued in July 2024 (previously Q3 2024):
    • Cost Method (Amendments to IAS 7)
    • Derecognition of Lease Liabilities (Amendments to IFRS 9)
    • Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
    • Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Guidance on implementing IFRS 7)
    • Gain or Loss on Derecognition (Amendments to IFRS 7)
    • Hedge Accounting by a First-time Adopter (Amendments to IFRS 1)
    • Introduction and Credit Risk Disclosures (Amendments to Guidance on implementing IFRS 7)
    • Transaction Price (Amendments to IFRS 9)
  • Climate-related and Other Uncertainties in the Financial Statements — The next project step will now be an exposure draft expected to be published in Q3 2024.

Governance projects

  • ISSB Consultation on Agenda Priorities — A feedback statement is now expected in June 2024 (previously Q2 2024).

Research projects

  • Business Combinations under Common Control — This project has been removed from the work plan since the IASB completed it by publishing a project summary on 17 April 2024.
  • Intangible Assets — This project has been added to the work plan and a review of the research is expected in H2 2024.
  • Post-implementation Review of IFRS 15 — Revenue from Contracts with Customers — A feedback statement is now expected in Q3 2024 (previously H2 2024).

Other projects

  • IFRS Accounting Taxonomy Update: The following projects were removed from work plan since the release of the update on 27 March:
    • Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7
    • Common Practice (Financial Instruments) and General Improvements
  • IFRS Accounting Taxonomy Update — Primary Financial Statements — A proposed IFRS Taxonomy Update is expected in May 2024 (previously Q2 2024)
  • IFRS Accounting Taxonomy Update Subsidiaries without Public Accountability: Disclosure and Amendments to IFRS 7 and IFRS 9 — A proposed IFRS Taxonomy Update is expected in Q3 2024 (previously H2 2024)
  • IFRS Sustainability Disclosure Taxonomy — This project has been removed from the work plan since the ISSB published the disclosure taxonomy in April 2024.

The above is a faithful com­par­i­son of the IASB and ISSB work plan at 26 March 2024 and 29 April 2024. For access to the current work plan at any time, please click here.

IFRS Foundation publishes its 2023 annual report

29 Apr 2024

The IFRS Foundation has published its annual report and audited financial statements for the year ended 31 December 2023.

The report for 2023 provides an overview of the IFRS Foun­da­tion’s ac­tiv­i­ties during the past year which included:

  • Completion of the technical decision-making on two IFRS Accounting Standards: IFRS 18 (issued in April 2024) and IFRS 19 (to be issued in May 2024).
  • Launch of the IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2).
  • Opening of new office in Beijing and increased support of its office in Tokyo.

In addition, the report sets out the Foun­da­tion’s, IASB’s and ISSB's pri­or­i­ties for 2024.

For more in­for­ma­tion, see the press release and annual report on the IFRS Foun­da­tion website.

ISSB publishes April 2024 podcast

29 Apr 2024

The International Sustainability Standards Board (ISSB) has released a podcast hosted by ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd discussing the latest developments from the ISSB.

The podcast discusses recent activities of the ISSB, including its April 2024 meeting in Frankfurt, where the ISSB finalised its decisions on its next two-year work plan. The ISSB decided to begin two new research projects on biodiversity, ecosystems and ecosystem services, and human capital.

The podcast also gives an outlook on the next steps of the ISSB, including the publication of new educational material on current and anticipated financial effects, the launch of the IFRS Sustainability Disclosure Taxonomy and the forthcoming joint educational material with EFRAG on interoperability.

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

Agenda for the April 2024 SCC meeting

26 Apr 2024

An agenda has been released for the meeting of the Sustainability Consultative Committee that will be held via video conference call on 29 April 2024.

A summary of the agenda is set out below:

Monday 29 April 2024 (14:00-15:30)

  • Welcome and opening remarks
  • ISSB consultation on agenda priorities
  • Adoption guide
  • SCC feedback survey
  • Closing remarks

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

April 2024 ISSB meeting notes posted

26 Apr 2024

The ISSB met on 23 April 2024 in Frankfurt. We have posted our comprehensive Deloitte observer notes for the project discussed during the meeting.

ISSB consultation on agenda priorities: The ISSB discussed feedback on four proposed projects: biodiversity, ecosystems and ecosystem services (BEES); human capital; human rights; and integration in reporting. The staff have applied the agreed upon criteria to assess each proposed project. Based on these, the ISSB decided to add to its work plan research projects on information about risks and opportunities associated with BEES and human capital. The ISSB decided not to add to its work plan projects about human rights, integration in reporting or any other topics.

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

IASB takes up research project on intangibles

23 Apr 2024

The new project aims to comprehensively review the accounting requirements for intangibles. Initial research will seek to define the project’s scope and explore how best to stage work on this topic to produce timely improvements to IFRS Accounting Standards.

The project builds on research done by national standard setters on the topic:

The new project acknowledges that, in the third agenda consultation, stakeholders highlighted deficiencies in the reporting of intangible assets and raised matters relating to all aspects of IAS 38 Intangible Assets, including its scope, its recognition and measurement requirements (including the difference in the accounting for acquired and internally generated intangible assets), and the adequacy of the information companies are required to disclose about intangible assets.

In response to that feedback and building on the research of the national standard setters, the IASB has now started a project to comprehensively review the accounting requirements for intangibles. The project will assess whether the requirements of IAS 38 remain relevant and continue to fairly reflect current business models or whether the IASB should improve the requirements. The IASB acknowledges that a comprehensive review of IAS 38 will be a large and complex project for the IASB and its stakeholders. 

Although the title of this project refers to intangible assets, the IASB will also consider whether the project should be limited to accounting for and disclosing information about financial statement elements or whether the project should aim to address intangible items more broadly.

The IASB has released a press release noting the launch of the project.

ISSB decides to begin research projects on biodiversity and human capital

23 Apr 2024

In its meeting today, the International Sustainability Standards Board (ISSB) has decided to start two new research projects: a project on biodiversity, ecosystems and ecosystem services, and a project on human capital.

Both research projects will examine which disclosures investors require to be able to assess sustainability-related risks and opportunities in these areas. 

Such disclosures are already required by IFRS S1, if they relate to material information about sustainability-related risks and opportunities. Entities are currently required to provide these disclosures with the help of sources of guidance (including the SASB standards).

With the research projects, the ISSB will now undertake its own standard-setting in these areas, with the objective to provide more specific disclosure requirements and thereby expanding the global baseline of sustainability-related financial disclosures. 

For more information, please see the press release on the IFRS Foundation website.

The ISSB has also decided not to begin a project related to integration in reporting at this time. However, the ISSB has agreed to closely monitor developments in this area and may consider including such a project in a future agenda consultation. In the January 2024 joint IASB-ISSB meeting, the boards noted that regardless of decisions made about their respective work plans, they still support the Integrated Reporting Framework. More information is available on the IFRS Foundation website.

Please click here to access our comprehensive Deloitte observer notes for the meeting.

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