This IASB Update highlights preliminary decisions of the
International Accounting Standards Board (Board). The Board's final decisions on
IFRS® Standards, Amendments and
IFRIC® Interpretations are formally balloted as set forth in
Process Handbook of the IFRS Foundation and the IFRS
The Board met on Tuesday 20 and Thursday 22 February 2018 at the IFRS Foundation's offices in London.
The topics, in order of discussion, were:
On 20 February 2018 the Board discussed the comments received on the Discussion Paper Disclosure Initiative—Principles of Disclosure.
No decisions were made.
At the March Board meeting, the Board will make decisions about next steps in the project.
The Board met on 20 February 2018 to discuss:
The Board continued its discussion from the January 2018 Board meeting about proposals for management performance measures. At the meeting the Board asked the staff to develop a simplified approach to management performance measures for a future meeting. No decisions were made.
The Board did not discuss this paper pending the discussion of a simplified approach for management performance measures.
The Board tentatively decided to propose:
The Board will continue its discussions about management performance measures and other topics included in the project scope at a future meeting.
The Board met on 22 February 2018 to discuss the asset profile—one of the core areas of the dynamic risk management accounting model.
The Board was also given a summary of discussions to date (Agenda Paper 4A, which was provided for information only). No decisions were made.
The Board discussed the role of the asset profile within the dynamic risk management model. In particular, the Board discussed the application of qualifying criteria to the asset profile, as well as designation of items within the asset profile and documentation requirements. The Board decided the staff should continue developing the model as follows:
Some Board members expressed reservations regarding the restrictiveness of some qualifying criteria and the staff acknowledged the need to seek external feedback
Regarding de-designation, some Board members directed the staff to evaluate the implications for amounts recognised in the statement(s) of financial performance arising from de-designation events. Also, the Board requested the staff to consider additional de-designation events to ensure consistency with the above mentioned qualifying criteria.
At a future meeting, the Board will discuss the target profile as described in the model.
The Board met on 22 February 2018 to discuss the Business Combinations under Common Control research project.
The Board tentatively decided to use the acquisition method set out in IFRS 3 Business Combinations as the starting point in its analysis of transactions within the scope of the project. Using that starting point will not determine whether the Board will ultimately propose applying the acquisition method to all, or even to many, transactions within the scope of the project.
All 14 Board members agreed with this decision.
The Board expects to continue its discussion on the methods of accounting for transactions within the scope of the project at future meetings.
The Board met on 22 February 2018 to receive an update on its research programme since the September 2017 meeting. (Information on the Board's work plan, including its research programme, is available here.)
During the discussion, the Board reviewed its research pipeline. Projects in the pipeline are not on the work plan. However, before the next Agenda Consultation (due in 2021), the Board expects to complete a significant proportion of the research needed for each project, though not necessarily to complete all of them. The Board decided that in the next few months the staff should aim to:
Eleven of 14 Board members agreed with this decision and three disagreed.
The other projects in the research pipeline are: the Equity Method; Pollutant Pricing Mechanisms; and High Inflation: Scope of IAS 29. The Board aims to start those projects in 2019 or early 2020, as well as the Post-implementation Reviews of: (a) IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities; and (b) IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
The Board expects to receive the next update on its research programme in around three or four months.
The Board met on 22 February 2018 to receive an update on:
The Board was not asked to make any decisions.
The Board will receive an update on the second TRG meeting to be held on 2 May.
The Board met on 22 February to discuss a background paper on discussion papers and exposure drafts. This discussion will inform the Board's future decisions on whether to publish a discussion paper or exposure draft for the projects on primary financial statements, goodwill and impairment, and rate-regulated activities. No decisions were made.
The Board will decide which documents to publish as it develops the projects.
The Board met on 22 February 2018 to discuss the possible accounting model being developed for activities subject to 'defined rate regulation'. In particular, the Board discussed:
The Board tentatively decided that:
The Board will discuss proposals for the scope and recognition requirements of the model before deciding whether to publish an Exposure Draft or a Discussion Paper as the next consultation document for the project.