Guarantees issued on obligations of other entities: The IFRS IC received a submission about how an entity, in its separate financial statements, accounts for guarantees that it issues on obligations of its joint venture in certain fact patterns. As the fact patterns submitted are highly specific and subtle differences in the specific facts and circumstances could change the conclusion, the staff considered that it would be inappropriate for the IFRS IC to conclude on the matter. Instead, the staff recommended that the IFRS IC publish a tentative agenda decision identifying the IFRS Accounting Standards an entity considers in accounting for guarantees that it issues. All IFRS IC members agreed with the decision not to conclude on how the three submitted fact patterns are accounted for and supported the approach of providing a framework and a flow chart decision tree to help entities determine which standards to apply.

IFRS 15—recognition of revenues from tuition fees: The IFRS IC received a submission about the period over which an entity that provides educational services recognises revenue from tuition fees when applying IFRS 15. The staff concluded that there is no evidence of diversity in how those educational institutions recognise revenue from tuition fees and recommended that the IFRS IC publish a tentative agenda decision explaining the reasons for not adding this matter to its agenda. Most of the IFRS IC members agreed that there is no sufficient evidence for diversity in the ‘over time’ recognition of the tuition fee described in the fact pattern and agree publishing a tentative agenda decision with some changes.

IFRS IC input into IASB projects:

• Pollutant pricing mechanisms: The purpose of the session was to obtain IFRS IC members’ input on the prevalence and significance of pollutant pricing mechanisms, and whether IFRS IC members have observed deficiencies in the accounting for these mechanisms. This information will contribute to the IASB’s horizon scanning activities and helping the IASB make an informed decision on whether to prioritise a project on the topic. In the meeting, IFRS IC members shared their views and thoughts on each of the areas.
• Post-implementation review (PIR) of IFRS 16: The purpose of this session was to seek IFRS IC members’ views on the implementation and ongoing application of IFRS 16 and to identify matters to include in the forthcoming request for information (RFI) for public consultation. In the meeting, IFRS IC members shared their thoughts on the various aspects of the PIR.

More In­for­ma­tion

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

The following topics are on the agenda:

An investor perspective on the ISSB’s work plan: The ISSB will receive a presentation about the investor perspective on its work plan.

Biodiversity, ecosystems and ecosystem services, and human capital: The ISSB will discuss connections between the content in the industry-based Sustainability Accounting Standards Board (SASB) standards and the ISSB’s new research projects. No decisions will be asked of the ISSB.

Enhancing the SASB standards: In this session, the ISSB will examine the general structure of the industry-based SASB standards and analyse several disclosure topics and metrics in detail. The ISSB will not be asked for any decisions.

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

The two exposure drafts, ED HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and ED HKFRS S2 Climate-Related Disclosures are proposed to be effective from 1 January 2025. 

The HKICPA has decided to propose full convergence with the standards of the International Sustainability Standards Board (ISSB) after a holistic assessment of relevant factors, including local and international developments as well as substantive evidence gathered from extensive engagement with a wide range of stakeholders over the past few years.

A vision statement published in March 2024 states that the application of HKFRS S1 and HKFRS S2 will prioritise publicly accountable entities including listed entities and regulated financial institutions in Hong Kong such as banks, fund managers, insurance companies and Mandatory Provident Fund (MPF) trustees.

Please click to access the press release, which includes links to the EDs and an explanatory memorandum, as well as FAQs, on the HKICPA website.

The Pan African Federation of Accountants (PAFA) has announced the establishment of a Centre of Excellence (CoE) for Sustainability. The CoE is set up to advance adoption and implementation of the ISSB standards in Africa. Please click for more information in the press release on the PAFA website.

The Botswana Stock Exchange (BSE) has published Sustainability Disclosure Guidance intended for use by locally listed companies on a voluntary basis. The guidance is informed by IFRS S1, the standards of the Global Reporting Initiative (GRI) and the draft European Sustainability Reporting Standards (ESRS) published in 2022. Please click to access the guidance on the BSE website.

The Global Reporting Initiative (GRI) and the International Foundation for Valuing Impacts (IFVI) have signed a Memorandum of Understanding aimed at making sustainability data as accessible, actionable and comparable as financial data. The two organisations have agreed to collaborate on building market uptake of each other’s methodologies, to promote each other’s research, to offer joint stakeholder engagement, to align their fundraising activities, and to collaborate on capacity building initiatives. For more information, please see the press release on the GRI website.

The European Commission (EC) has published a decision in which it provides EFRAG with up to EUR 3,240,000 in 2024 to finance the implementation of the pilot project for “Embarking companies and stakeholders into the European sustainability reporting journey” and the adoption of the work programme for 2024. Please click to access the decision on the EC website.

The Australian Government House of Representatives confirmed the Senate amendments to the Treasury Laws Amendment Bill 2024, which introduces mandatory climate reporting requirements for large and medium-sized companies. Once Royal Assent has been given on the Bill, the Australian Accounting Standards Board (AASB) will hold a virtual public meeting in which the AASB will consider the draft standards and formally vote on these. Please click to access the press release on the AASB website.

The regulatory proposal consists of amending the provisions in force to specify that in addition to the financial information currently submitted to the CNBV, issuers that are not financial entities or states and municipalities must present in the notes to their financial statements and in the annual report financial sustainability information prepared in accordance with IFRS S1 and IFRS S2.

Please click to access a Spanish language summary of the regulatory proposal (link to external website). Access to the full requires registration.

The following topics are on the agenda:

Power purchase agreements: The IASB will discuss staff recommendations on the scope of the amendments proposed in Exposure Draft (ED) Contracts for Renewable Electricity and the proposed own-use amendments.

Dynamic risk management: The IASB will discuss potential disclosure requirements for the dynamic risk management model and the circumstances for discontinuation of the model by an entity.

Amortised cost measurement: The IASB will be asked to make the project active and discuss the project direction.

Management commentary: The IASB will be given the opportunity to comment on the staff’s proposed approach in developing targeted refinements to the ED Management Commentary and will be asked for decisions on the suggested targeted refinements to proposals on Chapters 1-3 in the ED.

Statement of cash flows and related matters: The IASB will announce that the project is moving from the research pipeline to the research work plan. In addition, IASB members will be invited to ask questions on topics arising from its third agenda consultation and the academic literature review on this topic, and the planned research to support the decision on the scope of the project.

Addendum to the ED Third edition of the IFRS for SMEs Accounting Standard: The IASB will discuss feedback received in response to the ED Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard. The staff recommends to finalise the proposals and asks for permission to ballot the third edition of the IFRS for SMEs standard.

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

The session on dynamic risk management has been moved to 16 September (previously 17 September) while the session on the addendum to the Exposure Draft Third edition of the IFRS for SMEs has moved to 17 September (previously 16 September).

The full agenda for the meeting can be found here.

The ISSB will discuss the following:

• An investor perspective on the ISSB’s work plan
• Enhancing the SASB Standards
• Biodiversity, ecosystems and ecosystem services and human capital

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 Board will discuss the following:

• Cash flows and related matters
• Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard
• Amortised Cost Measured
• Dynamic Risk Management
• Power Purchase Agreements
• Management Commentary

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.

Members will discuss the initial membership of the IFRS Sustainability Reference Group (SRG). Please see the agenda and meeting paper on the IFRS Foundation website.