IASB Update January 2022

Work plan overview

IASB work plan update (Agenda Paper 8)

The IASB met on 25 January 2022 to:

• receive an update on its work plan; and
• discuss the approach to prioritising matters arising from post-implementation reviews.

IASB work plan update (Agenda Paper 8)

The IASB received an update on its work plan. The update included plans for the IASB:

1. to discuss the plan for its Management Commentary project in the second quarter of 2022, after it has discussed feedback on the Exposure Draft Management Commentary. In discussing that plan, the IASB will consider the implications of the IFRS Foundation Trustees’ decision to create the International Sustainability Standards Board and consider advice from stakeholders that the work of the two boards should be connected and cooperative.
2. to discuss aspects of its Goodwill and Impairment project in the first half of 2022, prioritising:

1. the package of disclosure requirements about business combinations described in the Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment; and
2. the analysis of specific aspects of the feedback on the subsequent accounting for goodwill.

The IASB was not asked to make any decisions.

Approach to prioritising matters arising from post-implementation reviews (Agenda Paper 8A)

The IASB discussed the approach to prioritising and responding to matters identified in post-implementation reviews.

Eleven of 12 IASB members agreed with the approach.

Next step

The IASB expects to receive the next update on its work plan by May 2022. 

Research and standard-setting

Primary Financial Statements (Agenda Paper 21)

The IASB met on 25 January 2022 to redeliberate some of the proposals in the Exposure Draft General Presentation and Disclosures relating to:

• management performance measures—disclosures—usefulness and reconciliations (Agenda Paper 21A); and
• management performance measures—disclosure of tax and non-controlling interests (NCI) (Agenda Paper 21B).

Management performance measures—Disclosures—Usefulness and reconciliations (Agenda Paper 21A)

The IASB tentatively decided:

1. to confirm the proposed requirement for an entity to disclose why a management performance measure communicates management’s view of performance, subject to some drafting considerations relating to the terms ‘why’ and ‘how’, including an explanation of:
   1. how the management performance measure is calculated; and
   2. how the measure provides useful information about the entity’s performance.
   All 12 IASB members agreed with this decision.
2. to confirm the proposed requirement for an entity to disclose a reconciliation between a management performance measure and the most directly comparable subtotal or total specified in IFRS Accounting Standards. All 12 IASB members agreed with this decision.
3. to provide additional application guidance to support the proposed requirement described in (a). The guidance would clarify that, where doing so would be necessary for a user of financial statements to understand why a management performance measure communicates management’s view of performance, the explanations described in (a)(i) and (a)(ii) would refer to the individual reconciling items. All 12 IASB members agreed with this decision.
   
4. to require an entity to disclose, for each reconciling item, the amount(s) related to each line item(s) in the statement(s) of financial performance. Eleven of 12 IASB members agreed with this decision.

Management performance measures—Disclosure of tax and NCI (Agenda Paper 21B)

The IASB discussed feedback on the proposal in the Exposure Draft to require an entity to disclose the effects of tax and non-controlling interests for individual items in the reconciliation between a management performance measure and the most directly comparable subtotal or total specified in IFRS Accounting Standards. The IASB made no decisions. It asked for further information about entities that already disclose the tax effects of such reconciling items; in particular, how they calculate the tax effect.

Next step

The IASB will continue to redeliberate the project proposals at future meetings.

Business Combinations under Common Control (Agenda Paper 23)

The IASB met on 25 January 2022 to complete its discussion of feedback on the remaining topics from the Discussion Paper Business Combinations under Common Control. The IASB discussed feedback on how an entity should apply the acquisition method and a book-value method to business combinations under common control, and the related disclosures an entity should be required to make. The IASB was not asked to make any decisions relating to this feedback. 

The IASB also discussed a plan for deliberating proposals based on the preliminary views in the Discussion Paper.

Next step

The IASB will begin deliberating the proposals at a future meeting.

Maintenance and consistent application

Maintenance and consistent application (Agenda Paper 12)

The IASB met on 25 January 2022 to discuss the Lack of Exchangeability project and to consider matters discussed at the November 2021 IFRS Interpretations Committee (Committee) meeting.

Lack of Exchangeability (IAS 21): Feedback Summary (Agenda Paper 12A)

In April 2021 the IASB published the Exposure Draft Lack of Exchangeability, which proposed amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates. The comment period ended in September 2021. At the January 2022 meeting the IASB discussed a summary of feedback on the Exposure Draft.

The IASB was not asked to make any decisions.

Next step

The IASB will consider the project’s direction at a future meeting.

IFRIC Update (Agenda Paper 12B)

The IASB received an update on the Committee’s November 2021 meeting. Details of this meeting were published in IFRIC Update November 2021.

The IASB was not asked to make any decisions.

Taxonomy

IFRS Taxonomy Update—Initial Application of IFRS 17 and IFRS 9―Comparative Information (oral update)

The IASB met on 25 January 2022 to receive an update on the feedback on the proposed IFRS Taxonomy update resulting from Initial Application of IFRS 17 and IFRS 9―Comparative Information, which amended IFRS 17, issued in December 2021. The IASB was also updated on the next steps to be taken in finalising the IFRS Taxonomy update.

The IASB was not asked to make any decisions.

Next step

The IASB will begin the balloting process and expects to issue IFRS Taxonomy 2021—Update 3 Initial Application of IFRS 17 and IFRS 9―Comparative Information in March 2022.