The call for applications is available through the press release on the EFRAG website. Candidates can only be nominated by EFRAG Member Organisations. Nominations for membership are invited by 10 February 2022.

In addition, EFRAG is looking for candidates for both the Chair and the members of its Sustainability Reporting Technical Expert Group. More information is available here.

Ongoing matter

IAS 37 Provisions, Contingent Liabilities and Contingent Assets—Negative low or new energy vehicle credits: In its November 2021 meeting, the Committee discussed a submission asking whether an entity with negative low emission vehicle credits has a present obligation that meets the definition of a liability in IAS 37. In the meeting, Committee members generally agreed with the staff's analysis that an entity that has generated negative credits has an obligation that meets the definition of a liability in IAS 37. Some Committee members suggested refining the words in the tentative agenda decision and some members suggested the analysis of the implications of the consensus in IFRIC 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment. The staff recommend publishing the tentative agenda decision with proposed refinements to the wordings.

Comment letter analysis

IFRS 9 Financial Instruments and IAS 20 Accounting for Government Grants and Disclosure of Government Assistance—TLTRO III Transactions: In its June 2021 meeting, the Committee discussed a submission asking how banks account for the European Central Bank (ECB)’s Targeted Longer-Term Refinancing Operations (TLTRO). Specifically, the submission asked whether the TLTRO III tranches are loans at a below-market interest rate which should be accounted for as a government grant. The staff have analysed the comment letters and recommend finalising the agenda decision with minor editorial changes.

Education session

IFRS 17 Insurance Contracts—Profit recognition for annuity contracts: The Committee received a submission about determining how to recognise unearned profit as revenue based on the services an entity provides to policyholders of annuity contracts in a scenario where an entity includes unearned profit in the measurement of insurance contracts and subsequently recognises it as revenue as the entity provides services. The paper provides an overview of the applicable IFRS 17 requirements and other background related to those requirements.

Administrative matters

Work in progress: The following new matters have not yet been presented to the Committee:

• Rent Concessions: Lessors and Lessees (IFRS 16 and IFRS 9)
• Special Purpose Acquisition Companies (SPAC): Accounting for warrants at acquisition (IFRS 2 or IAS 32)
• Special Purpose Acquisition Companies (SPAC): Classification of Public Shares as Liabilities or Equity (IAS 32)

The full agenda for the meeting and our com­pre­hen­sive pre-meet­ing summaries can be found here.

At the meeting, the AcSB and the ASBJ discussed specific technical topics in which both Boards have interest, including financial instruments, disclosure initiatives, and responding to changes in the market environment, including the interest of stakeholders. The two standard setters plan to continue to exchange views.

For more information about the meeting, see the press release on the ASBJ website.

The pronouncement includes minor improvements to IPSAS to address issues raised by stakeholders and minor amendments sourced from recent IFRS improvements and narrow scope projects.

Please click for more information and access to the pronouncement on the IPSASB website.

The topics discussed at the meeting included:

• IASB update

• Goodwill and impairment

• Forthcoming Exposure Draft: Supplier Finance Arrangements — Proposed amendments to IAS 7 and IFRS 7.

The meeting summary is available on the IASB website. In addition, the meeting page offers record­ing of meeting.

The next CMAC meeting will be held on 17 March 2022.

The Committee will discuss the following:

• IAS 37 — Negative low emission vehicle credits
• IFRS 9 and IAS 20 — TLTRO III Transactions
• IFRS 17 — Profit recognition for annuity contracts
• Work in progress

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 papers reflect the current state of the standard-setting work carried out by the Task Force following the due process the PTF-ESRS has defined for itself.

The cover note that accompanies the set of working papers sets out the intended architecture and structure of the standards, offers a draft index for the European Sustainability Reporting Standards as appendix 1 and access to the individual working papers as appendix 2. The drafts in the working papers published today cover four cross-cutting standards (of a total of five), two conceptual guidelines (of a total of six) and the ESRS E1 Climate change. The cover note highlights that the other working papers will be published in two further batches within the next weeks.

EFRAG emphasises that the publication of the working papers is to ensure a transparent process, it is not a public consultation. A future consultation is mentioned in the cover note, however, not date is given.

Please click to access the cover note linking to the working papers on the EFRAG website.

In the draft comment letter, EFRAG supports the IASB’s efforts to address the concerns of constituents that have emerged in the context of the IFRS Interpretations Committee’s agenda decision of December 2020 and accepts that liabilities should be classified as current or non-current based on the situation as at the end of the reporting period.

However, EFRAG raises the following points:

• EFRAG disagrees with the separate presentation of liabilities classified as non-current for which the entity’s right to defer settlement for at least twelve months after the reporting period is subject to conditions during that time.
• EFRAG suggests changes to the wording for differentiation between covenants that do not affect the classification at balance sheet date and covenants that affect the classification.
• EFRAG expresses concerns that the targeted scope of the disclosure requirements may be too broad in practice.

Comments on EFRAG's draft comment letter are requested by 9 March 2022. For more information, see the press release and the draft comment letter on the EFRAG website.

The following topics are on the agenda:

Maintenance and Consistent Application

In April 2021, the IASB published ED/2021/4 Lack of Exchangeability, which proposed to amend IAS 21. The comment period ended in September 2021. The purpose of this paper is to provide the IASB with a summary of feedback on the ED. There was general support for the proposals, with some suggestions. The IASB is not being asked to make any decisions at this meeting.

The staff will update the IASB on the most recent meeting of the IFRS Interpretations Committee.

Business Combinations under Common Control

The IASB published its Discussion Paper (DP) Business Combinations under Common Control (BCUCC) in November 2020. At this meeting the staff will present detailed summaries of feedback on the remaining topics from the DP: how to apply each measurement method (being the acquisition method and the book-value method) and disclosure. The IASB will also discuss the plan for deliberating the preliminary views in the DP. The IASB will be asked whether it agrees with the staffs proposed plan for deliberations but will not be asked to make any further decisions at this meeting.

Board work plan update

The staff will give the IASB an overview of its technical projects to support decisions about whether to add or remove projects, as may be discussed in individual project papers and an assessment of overall progress on the work plan, including project prioritisation and timing. The paper sets out projects completed since the last update, lists the projects out for consultation and notes that no documents are expected to be published for consultation within approximately the next six months. (Note: this conclusion relates only to the IASB. We expect the new ISSB will publish consultation documents during the next six months).

Approach to prioritising matters arising from post-implementation reviews

The staff have developed proposals to provide a more consistent approach to prioritising matters arising from post-implementation reviews (PIRs). The recommendations consider the nature of the evidence collected, what factors should lead to further action and how to prioritise projects.

Feedback on IFRS Taxonomy 2021—Proposed Update

The staff will give an oral update.

Primary Financial Statements

The staff recommend the IASB confirm the requirement for an entity to: disclose a description of why an MPM communicates management’s view of performance, including an explanation of how the MPM is calculated and how the measure provides useful information about the entity’s performance; disclose a reconciliation between an MPM and the most directly comparable subtotal or total specified in the Standards; add a requirement for an entity to disclose, for each item reconciling an MPM to the most directly comparable subtotal or total specified by IFRS Standards, the amount(s) related to each line item(s) in the statement(s) of financial performance; and specify that one way to meet this requirement is to use a side-by-side columnar format for the reconciliation.

The staff recommend the IASB retain the proposed requirements to disclose the income tax effects and the effect on NCI for each item disclosed in a reconciliation between an MPM and the most directly comparable IFRS specified subtotal or total and how the entity determined the income tax effect.

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

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

• Intangibles (1–8): The ASAF members generally agreed that the issues discussed in the EFRAG’s discussion paper Better Information on Intangibles are relevant and valid and said the IASB should undertake a comprehensive review of IAS 38 Intangible Assets, working with the ISSB to consider any relationship between intangibles and any future sustainability-related disclosure standards.
• Strategic / agenda consultations (9–42): The AcSB, EFRAG, FASB and AASB are currently seeking feedback from stakeholders on their future agendas. The ASAF shared feedback and questions and discussed how it compares to the feedback on the IASB’s agenda consultation.
• Agenda planning and feedback from the previous ASAF meeting (43–44): The ASAF members agreed with the proposed topics for the next ASAF meeting and also suggested discussing the projects on primary financial statements and dynamic risk management.
• Goodwill and impairment (45–66): The ASAF members received an update on the IASB’s recent discussions and provided feedback on the staff examples illustrating the information the staff expects an entity to disclose when applying the IASB’s preliminary views about adding disclosure requirements to IFRS 3 Business Combinations.
• Disclosure initiative — Subsidiaries without public accountability: Disclosures (67–81): The ASAF members shared their preliminary views on the scope of the IASB’s exposure draft Subsidiaries without Public Accountability: Disclosures published in July 2021.
• Disclosure Initiative — Targeted Standards-level review of disclosures (81–92): The ASAF members were updated on initial feedback from the IASB’s outreach on the exposure draft Disclosure Requirements in IFRS Standards — A Pilot Approach and shared feedback from their jurisdictions on the IASB’s proposals, including on the guidance for the Board, new disclosure requirements for IFRS 13, and new disclosure requirements for IAS 19.

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