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IFRS Foundation announces IFRS Interpretations Committee appointments

11 Jun 2024

The Trustees of the IFRS Foundation have announced the appointment of Mark Mahar, Natsumu Tsujino, and Leon Yongbum Kim to the IFRS Interpretations Committee.

They will succeed Guy Jones, Goro Kumagai and Jon Nelson, respectively. The new Committee members will start their three-year terms on 1 July 2024.

Please see the press release on the IFRS Foundation website for more information and the biographical background of the newly appointed members.

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GRI consults on revised standards for employment practices and working conditions

11 Jun 2024

The Global Reporting Initiative (GRI) has launched a consultation on revisions to its standards ‘GRI 202: Market Presence’, ‘GRI 401: Employment’ and ‘GRI 402: Labor/Management Relations’. The comment period for the revised standards ends on 4 October 2024.

The proposed changes relate to disclosures in the following areas:

  • Employment: non-standard forms of employment, apprentices and internships, fair recruitment, performance management, personal data protection and privacy, employment termination, and hiring and turnover metrics.
  • Remuneration and working time: includes policies and metrics of cost-of-living estimates, basic gender pay gap, and social protection coverage.
  • Significant changes for workers: consultation and notice periods to workers’ representatives, redeployment, up-skilling and re-skilling, and termination of employment.

According to the press release, the proposed changes are seeking greater transparency on employment practices and working conditions by addressing policies on employment relationships, pay and working hours, and how businesses handle significant changes for workers.

The revisions represent phase one of three in GRI’s labour project. Phase two will address working life and career development, while phase three will focus on workers’ rights and protections. Overall, 11 GRI standards will be revised as part of the project, guided by the human rights-based approach and due diligence.

Please click to access more information, including links to the consultation documents and two webinars taking place on 20 and 25 June, in the press release on the GRI website.

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Pre-meeting summaries for the June 2024 IFRS Interpretations Committee meeting

10 Jun 2024

The IFRS Interpretations Committee (Committee) meets on 11 June 2024. The IFRS IC will discuss the finalisation of an agenda decision and a new item, and will give input for two IASB projects.

Finalisation of agenda decision—IFRS 8 Operating Segments—Disclosure of Revenues and Expenses for Reportable Segments: In its November 2023 meeting, the IFRS IC discussed a submission about the application of IFRS 8:23 which requires an entity to report a measure of profit or loss for each reportable segment and to disclose specified amounts for each reportable segment. The staff concluded that i) an entity is required to disclose the specified amounts in IFRS 8:23(a)-(i) for each reportable segment if those amounts are included in the measure of segment profit or loss or regularly provided to the chief operating decision maker (CODM); and ii) in applying IFRS 8:23(f) by disclosing, for each reportable segment, material items of income and expense disclosed, entities determine what is considered “material” in accordance with IAS 1. In the November 2023 meeting, IFRS IC members agreed with i) above but raised their concerns on ii).

27 comment letters were received. Most of them agreed with the conclusion in i) above. However, the majority disagreed with the interpretation in ii). The staff continued to agree with the analysis in the tentative agenda decision with further explanation and recommends finalising the agenda decision, with some suggested changes.

Initial considerationIAS 7 Statement of Cash Flows— Classification of Cash Flows related to Margin Calls on “Collateralised-to-Market” Contract: The IFRS IC received a submission about whether an entity presents, in the statement of cash flows, the cash flows related to variation margin call payments on contracts to purchase or sell commodities at a predetermined price in the future as cash flows from activities other than operating or operating activities. The staff concluded that the fact pattern described is unlikely to become widespread and/or have a material effect in the future and decided to publish a tentative agenda decision to explain the reasons for not adding a standard-setting project.

IFRS IC input to IASB projects:

Intangible Assets: A research project on intangible assets has recently been added to the IASB’s work plan. In the initial phase of the project, the IASB would like to seek input on the problem that it is trying to solve, the scope of the project and how best to stage work to deliver timely improvements. The IASB therefore seeks the IFRS IC’s input on those areas.

Business Combinations—Disclosures, Goodwill and Impairment: The purpose of this session is to seek the IFRS IC’s views on three aspects (i.e. identifying strategic business combinations, exemption and impairment test) of the IASB’s proposals included in the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment.

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

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Pre-meeting summaries for the June 2024 ISSB meeting

10 Jun 2024

The ISSB will meet in a hybrid format (virtual and in Frankfurt) on 12 June 2024. We have posted our pre-meeting summaries for the meeting that allow you to follow the ISSB’s decision making more closely. We summarised the agenda papers made available by the ISSB staff and point out the main issues to be discussed by the ISSB and the staff recommendations.

The following topic is on the agenda:

SASB standards maintenance: The ISSB will discuss the criteria that could be used for assessing the priority of the workstreams focused on enhancing the Sustainability Accounting Standards Board (SASB) standards. ISSB members will be asked for feedback on the staff’s analysis, including whether the ISSB should place particular emphasis on any of the criteria. No decisions will be made.

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

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Accountancy Europe launches ‘ESRS perspectives’ publication series

10 Jun 2024

Accountancy Europe has launched a new publication series titled ‘ESRS perspectives’. The first paper in the series discusses the concept of materiality assessment under European Sustainability Reporting Standards (ESRS).

In the new publication series, Accountancy Europe summarises the requirements of the ESRS and shares views on aspects that merit further guidance and clarification. Where applicable, the publications incorporate EFRAG guidelines, but Accountancy Europe has not interpreted or provided guidance on any of the matters.

Please click to access the press release on the Accountancy Europe website, which includes a link to the first publication in the series.

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Recording of the third IASB webinar on IFRS 18 implementation

10 Jun 2024

On 6 June 2024, the IASB offered the third of a series of live webinars aimed at facilitating a comprehensive understanding of the recently issued IFRS 18 'Presentation and Disclosure in Financial Statements'.

The one-hour webinar was dedicated to the grouping of information in the financial statements and discussed enhanced guidance on organising information in financial statements and deciding whether to provide it in the primary financial statements or in the notes.

Recordings of all three of the webinars in the series are now available on this subsite of the IFRS Foundation website.

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FASB votes to propose integrating IAS 20 requirements into US GAAP

09 Jun 2024

At its meeting on 4 June 2024, the Financial Accounting Standards Board (FASB) discussed its project on accounting for government grants and decided, essentially, to propose to insert the requirements of IAS 20 'Accounting for Government Grants and Disclosure of Government Assistance' into US generally accepted accounting principles (US GAAP).

Currently, no specific rule requires companies to recognise and measure government grants under US GAAP. In response to feedback received on its 2021 agenda consultation, the FASB added a project on accounting for government grants to its research agenda in December 2021 and moved the project to its technical agenda in November 2023 to create recognition, measurement, and presentation requirements for business entities that receive government grants.

Following its vote at the 4 June meeting, the FASB directed its staff to proceed to drafting a proposed Accounting Standards Update for vote by written ballot. The Board also decided on a 90-day comment period for the proposed Update.

Please see the following additional information on the FASB website:

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June 2024 IASB meeting agenda posted

07 Jun 2024

The IASB has posted the agenda for its next meeting, which will be held in its offices in London on 19–21 June 2024 and will include a joint session with the FASB via video conference on 21 June 2024. There are nine topics on the agenda.

The Board will discuss the following:

  • Management commentary
  • Post-implementation of IFRS 16
  • Dynamic risk management
  • Equity method
  • Provisions
  • Pollutant pricing mechanisms
  • Work plan update
  • Post-implementation review of revenue standards (joint IASB-FASB)
  • Post-implementation review of leases standards (joint IASB-FASB)

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.

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Meeting summary of the May 2024 MCCG meeting

06 Jun 2024

The IASB's Management Commentary Consultative Group (MCCG) met on 21 May 2024 via video conference. A summary of the discussions at the meeting is now available.

The meeting focused on feedback by MCCG members and observers to inform the IASB’s forthcoming decision on the direction for the management commentary project.

The meeting summary is available on the IFRS Foundation's website.

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IASB calls for academic contributions to 2025 Research Forum

06 Jun 2024

The IASB has announced a call for paper for its 2025 IASB Research Forum, set to convene at the University of Paderborn in Germany on 6–7 November 2025. This event, held in conjunction with the academic journal 'Accounting Horizons', provides a significant platform for scholars to contribute to the disclourse on contemporary issues in accounting.

The IASB is soliciting submissions from academics on a range of topics which include:

  • Statement of Cash Flows and related matters
  • Intangible Assets
  • Other emerging issues relevant to the IASB
  • Cost and benefits of IFRS Accounting Standards
  • Impact of changes in the financial reporting environment

The deadline for paper submissions is 31 March 2025. For more information, see the press release on the IFRS Foundation website.

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