The podcast highlights some of the projects that were discussed during the meeting, including:

• climate-related and other uncertainties in the financial statements;
• management commentary; and
• power purchase agreements.

The podcast can be accessed here on the IFRS Foundation website.

Board work plan update: The staff provided an overview of the work plan. In particular, the staff presented completed projects, new projects, expected consultation documents and expected project completions.

Post-implementation review (PIR) of IFRS 9—Impairment: The IASB deliberated the feedback received in response to its request for information Post-implementation Review—IFRS 9 Financial Instruments—Impairment. The IASB decided not to take any further action on the matters raised by respondents regarding the use of forward-looking scenarios and post-model adjustments or management overlays in measuring expected credit losses.

Power purchase agreements: The IASB decided to propose amendments to the own-use requirements and to the hedge accounting requirements in IFRS 9. The IASB also decided to propose a scope for the amendments, as well as disclosure and transition requirements. The IASB gave permission to the staff to begin the balloting process for the exposure draft, which will have a shortened comment period of 90 days.

Second comprehensive review of the IFRS for SMEs standard: The IASB continued the redeliberations of its proposals in the exposure draft (ED) Third edition of the IFRS for SMEs Accounting Standard. In particular, the IASB decided to finalise the proposed amendments to Section 23 Revenue from Contracts with Customers and Section 2 Concepts and Pervasive Principles with some modifications. The IASB also made decisions with regard to other minor issues that were raised by respondents to the ED.

Climate-related and other uncertainties in the financial statements: The staff explained the approach it has taken to develop examples illustrating how to apply requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in financial statements.

Maintenance and consistent application: The IASB decided that some of the disclosure requirements in the forthcoming exposure draft (ED) Use of a Hyperinflationary Presentation Currency by a Non-hyperinflationary Entity should also apply to subsidiaries without public accountability. The IASB gave permission to ballot the ED.

PIR of IFRS 15 Revenue from Contracts with Customers: The IASB decided that no further action should be taken with regard to determining the transaction price, determining when to recognise revenue and disclosure requirements of IFRS 15.

Equity method: The IASB reconfirmed its tentative decisions regarding transitional requirements for the proposed amendments to IAS 28 and gave permission to start the balloting process for the exposure draft.

Management commentary: The IASB discussed the direction of the management commentary project. The staff had identified the following four broad alternative directions that the IASB could take: finalise the project; retire the project; undertake a broader project; and keep the project on hold. IASB members had mixed views on the alternatives but were not asked to make a decision. The alternatives will be discussed at a future meeting.

Catch-up exposure draft of the forthcoming IFRS 19 Subsidiaries without Public Accountability: Disclosures: The IASB decided which disclosure requirements from the forthcoming IFRS 18 Presentation and Disclosure in Financial Statements to propose in the “catch-up exposure draft” following the publication of IFRS 19.

Rate-regulated activities: The IASB continued to redeliberate the proposals in the exposure draft Regulatory Assets and Regulatory Liabilities. In particular, the IASB made decisions on the discount rate and reduced disclosure requirements.

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

In Kenya, the ISSB representatives met with President William Ruto. The discussion focused on the role of the African region in the development and implementation of the ISSB’s work. The Institute of Certified Public Accountants of Kenya (ICPAK) has stated its intention to adopt the ISSB standards.

In Nigeria, the ISSB representatives met with President Bola Ahmed Tinubu. President Tinubu reaffirmed Nigeria's previous commitment to implement the ISSB standards. 

In South Africa, the ISSB representatives were joined by IFRS Foundation Trustee Suresh Kana. They met with Deputy Finance Minister David Masondo, as well as representatives from the Johannesburg Stock Exchange, the Institute of Directors South Africa and the Integrated Reporting Committee of South Africa. Discussions focused on the value of the ISSB Standards for supporting resilient economies and as a tool for companies to communicate to investors how they are meeting South African decarbonisation and transition-related objectives.

For more information, please click to see the press release on the IFRS Foundation website.

Below is an analysis of all changes made to the work plan since our last analysis on 29 February 2024.

Standard-setting projects

• Business combinations — Disclosures, goodwill and impairment — Following the publication of the exposure draft on 14 March 2024, the next expected project step is now the discussion of the feedback received expected to begin in H2 2024
• Financial instruments with characteristics of equity — Discussion of the feedback received on the exposure draft is now expected to begin in May 2024 (previously Q2 2024)

Maintenance projects

• Addendum to the exposure draft 'Third edition of the IFRS for SMEs Accounting Standard' — The exposure draft is now expected in March 2024 (previously April 2024)
• Amendments to the classification and measurement of financial instruments — Final amendments are now expected in May 2024 (previously Q2 2024)

IASB publications expected in March (i.e. this week)

• Addendum to the exposure draft 'Third edition of the IFRS for SMEs Accounting Standard' — see above
• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — as part of the IFRS Accounting Taxonomy 2024
• IFRS Accounting Taxonomy Update — Common practice (Financial instruments) and general improvements — as part of the IFRS Accounting Taxonomy 2024

The above is a faithful comparison of the IASB and ISSB work plan at 29 February 2024 and 26 March 2024. For access to the current work plan at any time, please click here.

The purpose of the session is to inform academics involved in teaching financial reporting modules on the new requirements in IFRS 18 coming into effect on 1 January 2027. The session also aims to stimulate academic discussion and research that will be useful for the post-implementation review of IFRS 18.

The workshop will be structured in three sections: 1) New defined subtotals in the statement of profit or loss; 2) Requirements for aggregation and disaggregation, and 3) Management-defined performance measures.

Please click for more information and registration on the EAA website.

During the meeting, the IASB explained its reasons for suggesting a shortened comment period:

• IASB added the project on power purchase agreements as an urgent project in July 2023, following requests from stakeholders for a timely solution of the issue. Following the development of a possible solution by the staff, the IASB then discussed the issue at all meetings from December 2023 to March 2024.
• To achieve its objective of providing a timely solution as asked for by stakeholders, the IASB expects to publish an exposure draft in May 2024 and is currently aiming to finalise the amendments in 2024.
• Throughout the project, the IASB did extensive outreach with stakeholders - "shared the sandbox" with them - so stakeholders know what is coming and will only need to comment on technical details.
• The IASB has clearly communicated on the status of the project and the progress made throughout the project.
• The proposed changes are narrow-scope amendments affecting particular requirements in IFRS 9 only.
• Implementing the proposed amendments would not be burdensome for preparers.

The DPOC followed the reasoning of the IASB and only asked a few clarifying questions. It finally agreed to a shortened comment period of 90 days.

Please click for the following additional information on the IFRS Foundation website:  

• Agenda paper for the meeting explaining the IASB's rationale
• Recording of the DPOC meeting

Two new organisations will now participate as will one new representative of an organisation that has already been participating. Four members of participating organisations have been reappointed.

For more information, please see the press release on the IFRS Foundation website.

The following topic was discussed:

ISSB consultation on agenda priorities: The ISSB discussed the strategic direction of its activities. The ISSB decided to begin new research and standard-setting projects; support the implementation of IFRS S1 and IFRS S2; enhance the SASB standards; pursue connectivity between the requirements in sustainability and financial reporting standards; seek to ensure that the ISSB standards are interoperable with other sustainability standards; and engage with stakeholders. The ISSB also decided to place a high level of focus on supporting the implementation of IFRS S1 and IFRS S2; to place a slightly lower level of focus on enhancing the SASB standards and on beginning new research and standard-setting projects and to give these activities equal attention; to reserve resources to give the ISSB flexibility; and not to specify a level of focus on connectivity, interoperability and engaging with stakeholders, acknowledging that these activities are integral to all of the ISSB’s work.

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

The agenda for the DPOC meeting is sum­marised below.

Agenda papers for the meeting are available on the IFRS Foun­da­tion's website.

While Pillar 3 disclosures are meant to provide information about banking institutions’ risk management practices and regulatory capital ratios, UK Finance believes that the the Basel Committee on Banking Supervision (BCBS) can use its weight to back the ISSB’s IFRS standards and promote their adoption globally. The comment letter notes:

We recommend that BCBS encourage IFRS S2 adoption by banks in those regions that do not implement them. We recommend that the BCBS do all that is necessary to ensure that the global baseline framework of IFRS S2 requirements become and continue to inform jurisdictional climate risk disclosure requirements, driving consistency, comparability and thereby support broader sustainability disclosure objectives.

Please click to access the full comment letter on the UK Finance website. The recommendations around IFRS S2 Climate-related Disclosures inform the five key recommendations in the cover note.