The research report states that it has been widely observed that application of the existing version of IAS 36 Impairment of Assets is problematic in practice, causing significant issues at all stages in the financial reporting cycle. The authors conclude that the ongoing application issues demonstrate consistent divergence in understanding between preparers, users, auditors and regulators as to the procedures that should be applied in ensuring that assets are carried at no more than their recoverable amount. They are convinced that IAS 36 requires holistic reconsideration rather than piecemeal changes focussedon disclosure. The research report therefore recommends:

Review IAS 36 in its entirety with a view to issuing a new standard that provides principles that enable users, preparers, auditors and regulators to develop a common understanding of the practical aspects of undertakingthe procedures applied toensure that assets are carried at no more than their recoverable amount.

Other themes and recommendations coming out of the research include:

• There is an overall lack of clarity on the purpose of the impairment test;
• the application guidance does not align with internal decision-making; and
• diversity in disclosure reduces usefulness.

Please click to download the full research report from the AASB website.

The ITCG discussed the following:

• Proposed Taxonomy Update — Common Practice (IFRS 13): Amendment to analysis of comment received
• Proposed Taxonomy Update — General Improvements: Analysis of comments received

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

The Board considered the remaining topics in its review of concerns raised by stakeholders in relation to IFRS 17 Insurance Contracts: credit cards that provide insurance cover; transition requirements—risk mitigation option; implications for disclosure; and transition requirements. The Board decided to propose changes be made to IFRS 17 and IFRS 9 Financial Instruments. The Board will consider the package of amendments as a whole in its April 2019 meeting.

The Board decided to proceed to publish an Exposure Draft (in April or May) with proposed amendments to IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement to address the uncertainty introduced by IBOR reform.  The Board also decided that application of the relief should be mandatory and irrevocable.

Because this is an urgent matter, the comment period would be 45 days.

As part of the Disclosure Initiative the Board decided to add two examples to the Materiality Practice Statement to help those preparing financial statements avoid explaining their accounting polices using boilerplate or generic descriptions or simply repeating the requirements of IFRS Standards. .

The Board discussed two remaining issues in relation to the Exposure Draft Classification of Liabilities (as current or non-current). The Board decided to make some refinements to the proposal in relation to classification of liabilities with equity-settlement features and classification of loans for which the right to defer settlement is subject to lending conditions that will not be tested until after the end of the reporting period.

The Board continued its discussions of Business Combinations under Common Control by considering whether to develop a current value approach for all or some transactions that affect non-controlling interest (NCI) in the receiving entity (discussed in the December 2018 Agenda Paper 23) and a different approach, such as a predecessor approach, for transactions that affect lenders and other creditors in the receiving entity but do not affect NCI. No decisions were made.

In the Primary Financial Statements project the Board decided to require the separate presentation of several items in the primary financial statements (such as, in the statement of financial position, goodwill and investment in “integral” and “non-integral” associates and joint ventures accounted for using the equity method). However, they decided that entities not be required to present amortisation, depreciation and research and development expenditure in the statement(s) of financial performance. They also decided that entities be required to provide information about “unusual items” presented in the statement(s) of financial performance.

The staff gave an overview of the feedback it has analysed in relation to the Discussion Paper on Financial Instruments with Characteristics of Equity.

The 2015 Agenda Consultation led to a project to consider whether subsidiaries that are SMEs should be permitted to apply IFRS standards with reduced disclosures. The Board discussed the objective of the project.

The Board discussed progress in the Extractive Activities project, setting out the more significant developments in extractive activities since the publication of a Discussion Paper by the IASB in 2010. 

The Board discussed whether in reviewing and revising the IFRS for SMEs Standard, that it should continue to be aligned with full IFRS Standards. This would mean updating the IFRS for SMEs Standard for new and amended IFRS Standards, while considering whether the changes to IFRS Standards are relevant to SMEs, if the requirements should be simplified.  

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

Please click to access he summary and the video on the AcSB website. Our earlier news item on the framework is here.

Applying the criteria for evaluating proposed amendments agreed on in October 2018, the staff asked the Board to consider the following recommendations:

The Board has now considered all 25 topics identified in October 2018. At its April 2019 meeting, the Board plans to consider the package of amendments tentatively decided by the Board as a whole.

In addition, the IASB has issued a podcast on the dis­cus­sion at the March 2019 meeting of the Board about IFRS 17 which can be accessed through the press release on the IASB website. Also, our Deloitte meeting notes of the session are available here.

The agenda for the meeting is sum­marised below (all times are local time in Argentina):

Agenda papers from this meeting are available on the IASB's website

Mr Cendon and Ms Suzuki will begin their five-year terms on 1 July 2019. They will replace Amaro Gomes and Takatsugu Ochi as their second-term ends on 30 June 2019. For more in­for­ma­tion, see the press release on the IASB’s website.

A summary of the agenda is set out below:

Agenda papers for the meeting are available on the IASB website.

The full agenda for the meeting is sum­marised below:

Agenda papers for this meeting are available on the IASB's website.

The Board will consider the remaining topics in its review of concerns raised by stakeholders in relation to IFRS 17 Insurance Contracts: credit cards that provide insurance cover; transition requirements—risk mitigation option; implications for disclosure; and transition requirements. The staff are recommending some changes be made to IFRS 17 and IFRS 9 Financial Instruments. The Board will consider the package of amendments as a whole in its April 2019 meeting.

The staff recommend that the Board proceed to publish an Exposure Draft (in April or May) with proposed amendments to IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement to address the uncertainty introduced by IBOR reform.  Because this is an urgent matter, the comment period would be 45 days.

As part of the Disclosure Initiative the staff have developed two examples they think will help those preparing financial statements avoid explaining their accounting polices using boilerplate or generic descriptions or simply repeating the requirements of IFRS Standards. The examples would be included in the Materiality Practice Statement.

The Board will discuss two remaining issues in relation to the Exposure Draft Classification of Liabilities (as current or non-current). The staff are recommending refinements to the proposal in relation to classification of liabilities with equity-settlement features and classification of loans for which the right to defer settlement is subject to lending conditions that will not be tested until after the end of the reporting period.

The Board will continue its discussions of Business Combinations under Common Control by considering whether to develop a current value approach for all or some transactions that affect non-controlling interest (NCI) in the receiving entity (discussed in the December 2018 Agenda Paper 23) and a different approach, such as a predecessor approach, for transactions that affect lenders and other creditors in the receiving entity but do not affect NCI.

In the Primary Financial Statements project the staff are recommending that the Board require the separate presentation of several items in the primary financial statements (such as, in the statement of financial position, goodwill and investment in “integral” and “non-integral” associates and joint ventures accounted for using the equity method). However, they recommend that entities not be required to present amortisation, depreciation and research and development expenditure in the statement(s) of financial performance. They also recommend that entities be required to provide information about unusual items presented in the statement(s) of financial performance.

The staff will provide an overview of the feedback it has analysed in relation to the Discussion Paper on Financial Instruments with Characteristics of Equity.

The 2015 Agenda Consultation led to a project to consider whether subsidiaries that are SMEs should be permitted to apply IFRS standards with reduced disclosures. The staff paper sets out the objective of the project and provides some background information.

The staff will update the Board on progress in the Extractive Activities project, setting out the more significant developments in extractive activities since the publication of a Discussion Paper by the IASB in 2010. 

The staff recommends that in reviewing and revising the IFRS for SMEs Standard, that it should continue to be aligned with full IFRS Standards. This would mean updating the IFRS for SMEs Standard for new and amended IFRS Standards, while considering whether the changes to IFRS Standards are relevant to SMEs, if the requirements should be simplified and ensuring the outcome is proportionate.

More information

Our pre-meeting summaries are available on our March meeting note page and will be supplemented with our popular meeting notes after the meeting.