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Pre-meeting summaries for the November IASB meeting

07 Nov 2018

The IASB is meeting on Wednesday 14 and Thursday 15 November 2018. We have posted our pre-meeting summaries for the meeting that allow you to follow the IASB’s decision making more closely. For each topic to be discussed we summarise the agenda papers made available by the IASB staff and point out the main issues to be discussed by the IASB and the staff recommendations.

The Wednesday sessions start with the Board considering whether to defer the effective date of IFRS 17 Insurance Contracts (and the the related temporary exemption to IFRS 9 Financial Instruments) by a year. 

In the Primary Financial Statements discussion, the staff are recommending that EBITDA not be a required sub-total and that if an entity does use that term the measure must be calculated as “profit or loss minus all interest income and plus all interest expense, income tax, and depreciation and amortisation.”  They also recommend that the Board develop non-mandatory illustrative examples to accompany a revised IAS 1 Presentation of Financial Statements, remove the requirement in IAS 1:82(b) to present “finance costs” in the statement(s) of financial performance and clarify how the minimum line items are presented.

The Board will discuss three implementation issues. The staff are recommending changes to the proposed amendments to IAS 16 Property, Plant and Equipment in relation to accounting for the proceeds from selling any items produced while testing an asset. The staff are now recommending that the proceeds not be recognised as income, but continue to be deducted from the cost of the asset. The staff are recommending that the Board not start a project on accounting for cryptocurrencies or ICOs. Instead, they think the Board should monitor developments in these areas and ask the IFRS Interpretations Committee to consider issuing an Agenda Decision on the accounting for cryptocurrency holdings. Lastly, the staff are recommending that the Exposure Draft proposing amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets in relation to costs of fulfilling a contract also propose that early application be permitted.

The staff describe how they expect to manage the Management Commentary project using three work streams. The staff also set out the recommended objective of management commentary.

The Thursday sessions start with recommendations on how the Board should finalise proposed amendments to IAS 1 in relation to Classification of Liabilities as Current or Non-current.

The Board will consider a recommendation to update a reference to the Conceptual Framework in IFRS 3 Business Combinations

The proposed model for Rate-regulated Activities supplements the information provided by applying current IFRS Standards. The staff have assessed how the proposed model interacts with those other Standards. The papers also include recommendations about what information should be presented about rate-regulated activities.

More in­for­ma­tion

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

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IFRS Foundation announces technology initiative

05 Nov 2018

The IFRS Foundation has announced the launch of its technology initiative. The technology initiative will consider how changes in technology may affect the work done by the IASB in certain areas.

Specifically, the technology initiative will investigate how automation, AI, and the consumption of big data may affect accounting, financial reporting, standard-setting process, and stakeholder engagement.

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

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November 2018 IASB meeting agenda posted, IFRS 17 effective date to be discussed

03 Nov 2018

The IASB has posted the agenda for its next meeting, which will be held at its offices in London on 14 and 15 November 2018. There are seven topics on the agenda, most notably IFRS 17 'Insurance Contracts' and a possible deferral of the effective date of the standard.

The paper prepared by the staff on IFRS 17 provides background to the discussion and considers the implications of exploring amendments to IFRS 17 on the effective date of IFRS 17 and on the fixed expiry date for the temporary exemption to IFRS 9. It then asks two questions of the Board:

  • Given the Board plans to consider whether to explore amendments to IFRS 17, should the mandatory effective date of IFRS 17 be deferred by one year to 2022?
  • If the Board were to defer the mandatory effective date of IFRS 17 by one year, should the fixed expiry date for the temporary exemption to IFRS 9 in IFRS 4 also be deferred to 2022?

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 IFRS 17 paper is available here on the IASB website.

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Insurance contracts transition resource group meeting rescheduled

01 Nov 2018

The meeting for the next transition resource group (TRG) for IFRS 17 ‘Insurance Contracts’ has been rescheduled from 4 December 2018 to 4 April 2019.

The TRG meeting has been rescheduled to allow additional time for submission of implementation questions and due to the limited number and narrow scope of submissions received since the September 2018 TRG meeting. For more information, see the press release on the IASB’s website.

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EFRAG publishes two FICE bulletins

01 Nov 2018

The European Financial Reporting Advisory Group (EFRAG) has issued two bulletins to help constituents better understand the IASB’s discussion paper DP/2018/1 'Financial Instruments with Characteristics of Equity' and participate in the debate on it.

The two bulletins cover (1) the classification criteria included in the DP and (2) the presentation and disclosure requirements included in the DP.

Both bulletins can be accessed through the press release on the EFRAG website.

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IASB issues summary of share-based payment research project

31 Oct 2018

The International Accounting Standards Board (IASB) has issued 'Share-based Payment — Research on Sources of Accounting Complexity’, which summarises the work performed and conclusions reached in the share-based payment research project.

Specifically, the project summary provides the following information:

  • At a glance — a high-level look at why the board performed this research, summary of findings, and feedback and conclusions.
  • Sources of information — sources used by the staff to conduct their research.
  • Research findings — summaries on variety and complexity of terms and conditions of share-based payments, grant-date fair value measurement, and disclosures.
  • Feedback on research findings and conclusions.
  • Measurement models in IFRS 2.
  • A look at what the information required by IFRS 2 tell users of financial statements.
  • Implications of other projects and IFRS Standards to IFRS2.

For more information, see the press release and project summary on the IASB’s Web site.

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IASB finalises amendments to IAS 1 and IAS 8 regarding the definition of materiality

31 Oct 2018

The International Accounting Standards Board (IASB) has issued 'Definition of Material (Amendments to IAS 1 and IAS 8)' to clarify the definition of ‘material’ and to align the definition used in the Conceptual Framework and the standards themselves.



The materiality project arose as part of the IASB's Disclosure initiative started in 2012. The first document published as part of this project was the May 2013 feedback statement Discussion Forum – Financial Reporting Disclosure, which outlined the IASB's intention to consider a number of further initiatives, including a project on materiality, seeking to develop application guidance or educational material on materiality, with input from an advisory group.

A draft practice statement on materiality was published on 28 October 2015, however, subsequently it became clear that some of the proposed guidance needed to be authoritative to have the desired effect, so the project was split up into a part that would see a practice statement published and a part that was intended to result in amendments to IAS 1 and IAS 8. The finalised Practice Statement Making Materiality Judgements was published in September 2017 at the same time as an exposure draft ED/2017/6 Definition of Material (Proposed amendments to IAS 1 and IAS 8), which is being finalised today.


Changes and reasoning behind the changes

The changes in Definition of Material (Amendments to IAS 1 and IAS 8) all relate to a revised definition of 'material' which is quoted below from the final amendments:

Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.

Three new aspects of the new definition should especially be noted:

  • Obscuring. The existing definition only focused on omitting or misstating information, however, the Board concluded that obscuring material information with information that can be omitted can have a similar effect. Although the term obscuring is new in the definition, it was already part of IAS 1 (IAS 1.30A).
  • Could reasonably be expected to influence. The existing definition referred to 'could influence' which the Board felt might be understood as requiring too much information as almost anything ‘could’ influence the decisions of some users even if the possibility is remote.
  • Primary users. The existing definition referred only to 'users' which again the Board feared might be understood too broadly as requiring to consider all possible users of financial statements when deciding what information to disclose.

During redeliberations, the Board spent a lot of time on discussing what constitutes obscuring information. The amendments stress especially five ways material information can be obscured:

  • if the language regarding a material item, transaction or other event is vague or unclear;
  • if information regarding a material item, transaction or other event is scattered in different places in the financial statements;
  • if dissimilar items, transactions or other events are inappropriately aggregated;
  • if similar items, transactions or other events are inappropriately disaggregated; and
  • if material information is hidden by immaterial information to the extent that it becomes unclear what information is material.

The new definition of material and the accompanying explanatory paragraphs are contained in IAS 1 Presentation of Financial Statements. The defintion of material in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors has been replaced with a reference to IAS 1.


Effective date

The amendments are effective for annual reporting periods beginning on or after 1 January 2020. Earlier application is permitted.


Additional information

Please click for:


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AAOIFI to review and revise standards

31 Oct 2018

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has decided to revisit its existing financial accounting standards, with an aim to review and revise these standards, including a detailed analysis of each standard as well as benchmarking against other comparable standards and global best practices to identify and recommend areas of improvement or a complete overhaul, if required.

Stakeholders are invited to participate in a survey that is designed to explore views of financial statements preparers and users with regard to the practices in financial reporting for Islamic financial institutions, thereby helping AAOIFI to better align its standards to the requirements of its present and prospective stakeholders and to keep them close to global best practices and free of confusion and errors.

Please click to access the survey on the AAOIFI website.

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IASB issues podcast on latest Board developments

31 Oct 2018

The IASB has released a podcast featuring Chair Hans Hoogervorst, Vice-Chair Sue Lloyd, and education director Matt Tilling to discuss the deliberations at the October 2018 IASB meeting.

The podcast features discussions of the following topics in more detail (length of the podcast: ten minutes):

  • IFRS 17 Insurance contracts
  • Goodwill and impairment
  • Primary financial statements
  • Disclosure initiative
  • Implementation

The podcast can be accessed through the press release on the IASB website. More information on the topics discussed is available through our comprehensive notes taken by Deloitte observers at the October IASB meeting.

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New composition of ASAF announced

30 Oct 2018

The IFRS Foundation has announced the new membership of the Accounting Standards Advisory Forum (ASAF) that is designed to formalise and streamline the relationships between the IFRS Foundation and IASB with the global standard-setting community.

The ASAF is comprised of 12 members and a non-voting chair. The new composition is as follows:

Geographical region ASAF member
Africa Pan African Federation of Accountants (PAFA)
Americas Group of Latin American Standard Setters (GLASS)
Canadian Accounting Standards Board
United States Financial Accounting Standards Board (FASB)
Asia/Oceania Accounting Standards Board of Japan (ASBJ)
Accounting Regulatory Department, PRC Ministry of Finance China
Korea Accounting Standards Board (KASB)
Asia Oceania Standard Setters Group (AOSSG)
Europe Autorité des normes comptables (ANC)
United Kingdom Financial Reporting Council (FRC)
Organismo Italiano di Contabilità (OIC)
European Financial Reporting Advisory Group (EFRAG)

Please click for the press release on the IASB website.

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