During the introduction of the consultation paper Mr Liikanen noted that when the challenges are global, the most optimal solution would be global. He explained that there have calls for the IFRS Foundation to play a role in this area as the Foundation has a well-established model of global standard-setting, working in close cooperation with both public and private stakeholders.

The presentation was followed by a lively panel discussion on "Climate-related financial disclosures in mainstream entity reporting: Good practices and key challenges", that among other speakers saw participation of representatives of TCFD, CDSB, CDP, and UNEP FI.

Please click for the following additional information:

• Transcript of Mr Liikanen's presentation on the IASB website
• Recording of the entire session (two hours) on the UNCTAD website (please scroll down and choose 5/11/2020, 14:00) - this option also offers Arabic, Chinese, French, Russian, and Spanish translations of the presentations and discussion

The forum saw the presentation of four academic papers, followed by a responses of an academic and of an IASB/NNS representative, and two panel discussions around research opportunities related to IFRS 9 and to IFRS 15. The audience was invited to participate in the discussions. The recordings are now available on the IASB website.

The purpose of the session was to obtain feedback from academics on the proposals in the March 2020 DP and to discuss relevant academic evidence.

Please click for more information and access to the recording (2 hours) on the IASB website.

The ITCG discussed the following:

• IFRS Taxonomy content — Disclosure of early application of new or amended IFRSs

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

The podcast discusses:

• Work plan changes as a result of COVID-19;
• 2020 Agenda consultation;
• Management commentary;
• Disclosure initiative — Subsidiaries that are SMEs;
• Equity method of accounting; and
• Maintenance and consistent application.

The podcast (15 minutes) can be accessed through the press release on the IASB website.

The detailed notes taken by Deloitte observers at the meeting are available here.

Board work plan update: This was the first periodical update of the work plan, replacing the research update. The staff have been reviewing the timing of consultation documents and recommend some changes to the timing of consultations (such as delaying the Management commentary ED until May 2021) and extending some comment periods (such as for the DP on BCUCC), all of which the Board supported. The work plan on the IFRS Foundation website was updated after the meeting.

2020 Agenda consultation: The IASB is preparing to issue a Request for Information (RFI) in the first quarter of 2021, as part of the public consultation on its work plan that it is required to undertake every five years. The Board decided that the RFI describe 27 potential projects identified from outreach undertaken.

Maintenance and consistent application — Deferred tax related to assets and liabilities arising from a single transaction: In July 2019, the Board published an ED proposing amendments to IAS 12. The Board confirmed the proposal to narrow the scope of the recognition exemption so that it will not apply to transactions that give rise to equal amounts of taxable and deductible temporary differences. The Board also decided to remove the capping proposal.  

Management commentary: This was the last decision-making meeting for the ED. The Board gave the staff permission to begin the formal drafting and balloting processes. The staff papers included the working draft of their guidance on the provision of information about matters that could affect an entity’s long-term prospects, intangible resources and relationships, and ESG matters, but this was to elicit feedback rather than seeking any formal decisions. The ED is expected to be published in May 2021.

Extractive activities: The staff presented findings on the diversity of accounting policies applied to exploration and evaluation expenditure within the scope of IFRS 6. The staff’s research indicates that diversity is primarily due to the extent to which an entity recognises exploration and evaluation expenditure incurred during the reporting period as an asset and the unit of account that an entity decides to apply to its exploration and evaluation expenditure asset. Most of the entities in the sample use area of interest accounting.  The ‘full cost’ and successful efforts methods are the most common accounting policies for oil and gas companies not applying ‘area of interest’ accounting. The Board was not being asked to make any decisions. Board members mentioned that a potential solution could be to amend IFRS 6 by requiring further disclosures but that the staff have to increase engagement with financial statement users for a better understanding of the disclosures that they would consider relevant.

Equity method: Work on reviewing aspects of IAS 28 began in May. The Board decided that the objective of this review be to assess whether application problems with the equity method for associates and joint ventures can be addressed by identifying and explaining the principles of IAS 28. The Board decided not to consider whether the equity method is a one-line consolidation method or a measurement method, whether it should be replaced by one of the measurement bases in the Conceptual Framework or whether significant influence should be the basis for when to apply the equity method.

Disclosure initiative — Subsidiaries that are SMEs: The IASB is developing a Standard setting out reduced disclosure requirements for subsidiaries apply IFRS Standards but meet the definition of an SME. At this meeting the IASB decided on how entities will communicate that they have applied the reduced disclosure requirements and how the disclosure requirements of IAS 8 should be applied by these entities.

The staff gave an oral update on Dynamic Risk Management (DRM). The staff is setting up meetings to discuss the DRM model with 25 banks from different jurisdictions between now and the end of January 2021. The staff expect to present the feedback from this outreach to the Board in March or April 2021. The Board will then decide the project direction.

The staff gave an oral update on the IFRS Taxonomy, and the proposed updates (PTU/2019/1 Interest Rate Benchmark Reform—Amendments to IFRS 9, IAS 39 and IFRS 7 and PTU/2020/2 Amendments to IFRS 17, Extension of the Temporary Exemption from Applying IFRS 9 and Property, Plant and Equipment—Proceeds before Intended Use). Concerns continue to be raised about the paucity of comment letters (only one was received for PTU/2019/1 and none for PTU/2020/2).

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

The online event covered the following topics:

• Improving disclosure about business combinations;
• improvements to the goodwill impairment test; and
• a possible reintroduction of amortisation of goodwill.

During the discussion, participants from a range of backgrounds such as enforcement, auditing, academia, valuation and preparation of accounts, shared their views and concerns around the proposals contained in the Discussion Paper Business Combinations —  Disclosures, Goodwill and Impairment.

Please click to access the summary report on the EFRAG website.

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

• Goodwill and impairment (1–9): The ASAF discussed the initial feedback on the discussion paper from their stakeholders, and how that feedback compared to what the Board has heard so far. In addition, the ASAF members outlined their plans for outreach and fieldwork to stimulate feedback to the discussion paper.
• Business combinations under common control (10–15): The ASAF was given an update on the outreach plans for the forthcoming discussion paper. The ASAF members provided feedback on the proposed focus in the outreach, stakeholder events in their jurisdictions, and on how to facilitate effective stakeholder engagement.
• Conceptual Framework for Financial Reporting (16–19): The FASB provided an overview of its proposed Chapter 4 Elements of Financial Statements of FASB Concepts Statement No. 8 Conceptual Framework for Financial Reporting.
• Update and agenda planning (20–23): The ASAF members discussed the Board’s current work plan and planned topics for the December 2020 ASAF meeting.

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

Below is an analysis of all changes made to the work plan since our last analysis on 28 September 2020.

Standard-setting projects

• Disclosure initiative — Subsidiaries that are SMEs — the decision of whether to issue a discussion paper or an exposure draft is now expected in December 2020 (previously fourth quarter of 2020)
• Management commentary — the issuance of an exposure draft is now expected in the first half of 2021 (previously first quarter of 2021)
• Primary financial statements — the review of the feedback to the exposure draft is now expected in December 2020 (previously fourth quarter of 2020)

Maintenance projects

• 2019 Comprehensive review of the IFRS for SMEs — the feedback on the request for information is now expected to be discussed in December 2020 (previously fourth quarter of 2020)
• Accounting Policies and Accounting Estimates (Amendments to IAS 8) — the issuance of final amendments is now expected in December 2020 (previously fourth quarter of 2020)
• Deferred tax related to assets and liabilities arising from a single transaction — the Board decided to finalise the amendments (no date given)
• Disclosure initiative — Accounting policies — the issuance of final amendments is now expected in December 2020 (previously fourth quarter of 2020)
• Disclosure initiative — Targeted standards-level review of disclosures — the issuance of an exposure draft is now expected in the first quarter of 2021 (previously first half of 2021)
• Lack of exchangeability — the issuance of an exposure draft is now expected in the first quarter of 2021 (previously no date given)

Research projects

• Dynamic risk management — the feedback on the core model is expected to be discussed in the first half of 2021 (outreach was undertaken through October 2020)
• Equity method — a project newly added to the work plan, a project direction is yet to be decided
• Financial instruments with characteristics of equity — a decision on the project direction is now expected in December 2020 (previously fourth quarter of 2020)
• Goodwill and impairment — the feedback on the discussion paper is now expected to be discussed in the first quarter of 2021 (previously first half of 2021)
• Pension benefits that depend on asset returns — a review of the research is now expected in December 2020 (previously November 2020)
• Post-implementation review of IFRS 10, IFRS 11 and IFRS 12 — the issuance of a request for information is now expected in December 2020 (previously fourth quarter of 2020)

Other projects

• 2020 Agenda Consultation — the issuance of a request for information is now expected in the first quarter of 2021 (previously first half of 2021)
• IFRS Taxonomy Update — 2020 General Improvements and Common Practice — a proposed IFRS Taxonomy Update was published on 29 October 2020 and the feedback is expected to be discussed in the first quarter of 2021
• IFRS Taxonomy Update — Amendments to IAS 1, IAS 8 and IFRS Practice Statement 2 — this project has been added to the work plan and a proposed IFRS Taxonomy Update is expected in December 2020
• IFRS Taxonomy Update — Amendments to IFRS 17, IFRS 4 and IAS 16 — the feedback on the proposed IFRS Taxonomy Update has been discussed and a final IFRS Taxonomy Update is expected in the first quarter of 2021
• IFRS Taxonomy Update — Interest Rate Benchmark Reform — Phase 2 — the feedback on the proposed IFRS Taxonomy Update was expected to be discussed in October 2020, however, the date entry has been removed
• Sustainability reporting — newly added to the work plan; the feedback on the Trustees' consultation paper is expected to be discussed in December 2020 (although the consultation period does not end until 31 December 2020)

The above is a faithful comparison of the IASB work plan at 28 September 2020 and 31 October 2020. For access to the current IASB work plan at any time, please click here.

Meeting activities included the following:

• Executive session:
  • Report of the Executive Director — The Trustees received a report from the Executive Director Lee White on activities since the last meeting.
  • Update on sustainability reporting — The Trustees discussed the initial reactions to the consultation paper on sustainability reporting that they published in September.
  • Committee reports — The Trustees discussed reports from the Business Process and Technology Committee, the Audit, Finance and Risk Committee, the Human Capital Committee, the Nominating Committee, and the DPOC. (A report of the DPOC meeting is attached to the meeting summary.)
• IASB Chairman’s report — The Chair of the IASB noted the successful completion of time-sensitive amendments to IFRS 17 Insurance Contracts and to the financial instruments standards to address the effects of the ongoing IBOR reform, and updated the Trustees on the continuing discussion in the EU about endorsement of IFRS 17.

For more information, see the full summary on the IFRS Foundation Trustees’ and DPOC meeting on the IASB’s website.