The ITCG discussed the following topics:

• Review of IFRS Taxonomy due process and update on PPA modelling

• Fieldwork for IFRS Accounting Taxonomy 2024 Proposed Update 1 — IFRS 18 Presentation and Disclosure in Financial Statements
• The approach to the IFRS Accounting Taxonomy transition for IFRS 18 and approach to taxonomy entry points including the IFRS for SMEs Accounting Standard entry point
• 2024 US GAAP Meta Model Relationships Taxonomy
• Update on digital financial reporting activities
• GRI digital taxonomy briefing—Global Sustainability Standards Board

The meeting summary is available on the IFRS Foun­da­tion website.

The new technical explanations comprise of 27 items and are provided as part of EFRAG's role as technical advisor to the European Commission to provide a practical and timely support for preparers and others in the implementation of ESRSs.

For more information, including access to the compilation of all technical explanations published to date, please see the press release on the EFRAG website.

In the podcast, ISSB Vice-Chair Sue Lloyd, ISSB member Veronika Pountcheva and an ISSB staff member discuss the key points from the questions from the meeting. 

The TIG discussed:

• Revision of preceding period estimated amounts when estimating information from an entity in the value chain

• Application of the requirements on comparative information when acquiring or disposing of a subsidiary

Please click to access the podcast via the press release on the IFRS Foundation website.

Background

In June 2022, the IFRS Interpretations Committee (IFRS IC) discussed a request about the accounting applied by a parent, whose functional currency is the currency of a hyperinflationary economy, when it consolidates a subsidiary, whose functional currency is the currency of a non-hyperinflationary economy. Through research on this matter, the Committee also became aware of a related matter, where an entity that has a non-hyperinflationary functional currency presents its financial statements in hyperinflationary presentation currency.

The Committee decided to refer the matter to the IASB by recommending that the IASB develop a narrow-scope amendment that provides a relevant translation method applicable to address the original question asked to the Committee and the related matter. The IASB now proposes amendments to IAS 21 to address the matters.

Suggested changes

The proposed amendments in exposure draft IASB/ED/2024/4 Translation to a Hyperinflationary Presentation Currency (Proposed amendments to IAS 21) are:

• When an entity translates amounts from a functional currency that is the currency of a non-hyperinflationary economy to a presentation currency that is the currency of a hyperinflationary economy, the entity translates those amounts, including comparative amounts, using the closing rate at the date of the most recent statement of financial position; and
• the entity would have to disclose that it has applied the method, including summarised financial information about its foreign operations translated applying the proposed translation method; it would also have to disclose if the economy concerned ceased to be hyperinflationary.

The exposure draft also proposes that there should be no disclosure reliefs for entities applying IFRS 19 Subsidiaries without Public Accountability: Disclosures.

Comments on the proposed changes are requested by 22 November 2024.

Effective date and transition

The exposure draft does not specify an effective date for the amendments. The effective date will be decided when the IASB redeliberates the proposals. However, the exposure draft notes that entities would be required to apply the amendments retrospectively and would be permitted to apply them before the effective date.

Additional information

Please click for:

• IASB press release
• Access to the exposure draft on the IFRS Foundation website
• Our IAS Plus project page on Use of a hyperinflationary presentation currency by a non-hyperinflationary entity
• Our iGAAP in Focus newsletter explaining the proposals

The discussion features perspectives from both Global Preparers Forum (GPF) and IASB members.

Please click to access the webcast on the IFRS Foundation website.

The topics discussed at the meeting included:

• Intangible assets
• Statement of cash flows and related matters
• IFRS 19 update
• Exposure Draft Business Combinations — Disclosures, Goodwill and Impairment
• Exposure Draft Contracts for Renewable Electricity

For more in­for­ma­tion, see the meeting page and the meeting summary on the IFRS Foundation's website.

The following topics are on the agenda:

Supporting implementation of IFRS S1 and IFRS S2: The ISSB will have the opportunity to ask questions or make comments on the summary of the June 2024 meeting of the Transition Implementation Group on IFRS S1 and IFRS S2.

Work plan: The ISSB will discuss how to embed interoperability in the ISSB’s ongoing activities and will receive an overview of the design and approach for the new research projects on biodiversity, ecosystems and ecosystem services, and human capital.

Maintenance of the Sustainability Accounting Standards Board (SASB) standards: The staff will set out the overall approach to enhancing the SASB standards during the next two years.

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

The DPOC discussed the ISSB’s Consultation on Agenda Priorities and covered the agenda consultation process, the methodology of the Request for Information, feedback from stakeholders and the ISSB’s responses, and a review of the due process done.

Please click to access the summary on the IFRS Foun­da­tion website.

The following topics are on the agenda:

Post-implementation review (PIR) of IFRS 15: The IASB will be asked to make the final decisions with regard to the PIR of IFRS 15 and determine the next steps.

Second comprehensive review of the IFRS for SMEs Accounting Standard: The IASB will make decisions on impairment of financial instruments, financial guarantee contracts and sweep issues. The staff is asking the IASB to give permission for balloting the final standard.

Rate-regulated activities: The staff will ask that the IASB make decisions on extending the measurement proposals on items affecting regulated rates on a cash basis to other items, transition requirements and the effective date of the new standard. They also ask the IASB to give permission to ballot the final standard.

Dynamic risk management (DRM): The IASB will discuss applicable risk management activities for the DRM model. The staff also recommend that application of the model is optional.

Financial instruments with characteristics of equity: The staff will present a summary of the feedback received from users of financial statements in response to the exposure draft and will set out a project plan for the amendments to IAS 32. No decisions will be asked of the IASB.

Maintenance and consistent application: IASB members will be asked whether they object to an agenda decision of the IFRS Interpretations Committee on disclosure of revenues and expenses for reportable segments (IFRS 8).

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

The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.

The pronouncement comprises the following amendments:

The amendments are effective for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted.

The amendments do not include transition requirements, other than that an entity is required to apply the amendment to IFRS 9:2.1(b)(ii) to lease liabilities that are extinguished on or after the beginning of the annual reporting period in which the entity first applies that amendment.

Please click for the following additional information:

• Press release on the IFRS Foundation website
• Our IAS Plus project page on Annual improvements — Volume 11
• Our iGAAP in Focus newsletter explaining the amendments