IASB Update March 2025

Work plan overview

IASB work plan update (Agenda Paper 8)

The IASB met on 20 March 2025 to receive an update on its work plan.

The IASB was not asked to make any decisions.

Next step

The IASB expects to receive another update on its work plan in the next three to four months.

Research and standard-setting

Post-implementation Review of IFRS 16 Leases (Agenda Paper 7)

The IASB met on 18 March 2025:

• to discuss feedback and other information gathered in the first phase of the Post-implementation Review (PIR) of IFRS 16 Leases;
• to discuss a review of academic literature relevant to the PIR; and
• to decide what questions should be included in a public consultation in the form of a request for information (RFI).

Feedback analysis—Overall assessment of IFRS 16 (Agenda Paper 7B)

The IASB tentatively decided to include questions in the RFI to assess whether:

1. IFRS 16 is meeting its objective and whether its core principles are clear; and
2. the benefits to users of the information reported in accordance with IFRS 16 and the costs—particularly ongoing costs—of applying the requirements, and auditing and enforcing their application, are not significantly different from what the IASB expected.

All 14 IASB members agreed with these decisions.

The IASB tentatively decided not to include a question in the RFI to assess whether the IASB could make any improvements to the requirements in IFRS 16 that would help users to compare entities that apply IFRS 16 with those that apply FASB ASC Topic 842, Leases.

Ten of 14 IASB members agreed with this decision.

Feedback analysis—Identifying a lease, lease term and the lessee accounting model (Agenda Paper 7C)

The IASB tentatively decided to include questions in the RFI to assess whether:

1. the lease-term requirements provide a clear and sufficient basis for entities to determine a lease term and whether entities are able to apply the requirements consistently;
2. the benefits to users of the information reported in accordance with the lease-term requirements are not significantly lower than the IASB expected;
3. the requirements for variable lease payments provide a clear and sufficient basis for lessees to determine which variable lease payments are included in the measurement of the lease liability;
4. the requirements for discount rates provide a clear and sufficient basis for lessees to determine a discount rate (usually an incremental borrowing rate), and whether entities are able to apply the requirements consistently;
5. the effects of applying the discount-rate requirements are not significantly different from what the IASB expected;
6. the ongoing costs of remeasuring lease liabilities (to reflect reassessments of lease liability or lease modifications) are not significantly higher than the IASB expected; and
7. the benefits to users of the information about lease-related cash flows that lessees present in the statement of cash flows (or disclose in the notes to financial statements) are not significantly lower than the IASB expected.

The IASB tentatively decided not to include questions in the RFI about:

1. the requirements for identifying a lease;
2. the recognition requirements for lessees; and
3. the effects of the lack of specific requirements for lessees to account for non-cash consideration.

Twelve of 14 IASB members agreed with these decisions.

Feedback analysis—Lessor accounting, sale and leaseback transactions and transition (Agenda Paper 7D)

The IASB tentatively decided not to ask stakeholders whether they have identified potential unintended consequences (such as widespread diversity in accounting practice) that the amendments to the lessee accounting model might have caused to the lessor accounting model. (Under IFRS 16, the lessor accounting model is subject to fewer or less detailed requirements compared to the lessee accounting model.)

Ten of 13 IASB members present agreed with this decision. One member was absent.

The IASB tentatively decided to include questions in the RFI to assess:

1. which transition requirements were helpful to entities;
2. whether entities provided sufficient information to allow users to understand how implementing IFRS 16 changed the entities’ financial performance, financial position and cash flows; and
3. whether entities have any feedback on the transition to IFRS 16 that could inform the IASB’s future standard-setting projects.

The IASB tentatively decided not to include any questions in the RFI about the requirements for sale and leaseback transactions with variable lease payments that do not depend on an index or a rate.

All 13 IASB members present agreed with these decisions. One member was absent.

Feedback analysis—Applying IFRS 16 with other IFRS Accounting Standards (Agenda Paper 7E)

The IASB tentatively decided to ask stakeholders about applying IFRS 16 alongside IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers.

Specifically, the IASB tentatively decided to include questions in the RFI to assess whether any action is needed in relation to:

1. how a lessee distinguishes between a lease modification as defined in IFRS 16 and an extinguishment (or a partial extinguishment) of a lease liability (to which IFRS 9 applies) when it accounts for a rent concession in which the only change to the lease contract is the lessor’s forgiveness of lease payments due from the lessee under that contract;
2. the requirements in IFRS 15 which the seller-lessee applies when assessing whether the transfer of an asset in a sale and leaseback transaction is accounted for as a sale of that asset; and
3. the requirements in IFRS 16 about partial gain or loss recognition for sale and leaseback transactions, considering differences between these requirements and the revenue recognition model in IFRS 15.

The IASB tentatively decided not to include a question in the RFI about relevant market developments since February 2021 when the IFRS Interpretations Committee deliberated the feedback on its tentative agenda decision relating to the application of IFRS 10 Consolidated Financial Statements alongside IFRS 16 to the sale and leaseback of an asset in a single-asset entity.

The IASB tentatively decided not to include any questions in the RFI about the application of IFRS 16 alongside other IFRS Accounting Standards.

All 13 IASB members present agreed with these decisions. One member was absent.

Next steps

The IASB expects to approve the publication of the RFI and set a comment period. The IASB plans to publish the RFI in June 2025.

Rate-regulated Activities (Agenda Paper 9)

The IASB met on 19 March 2025 to discuss whether to develop reduced disclosure requirements for the prospective IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities (prospective RARL Accounting Standard).

Reduced disclosures for regulatory assets and regulatory liabilities (Agenda Paper 9)

The IASB tentatively decided to confirm its proposal in the Exposure Draft Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures to require an entity applying IFRS 19 and the prospective RARL Accounting Standard to apply all the disclosure requirements in the prospective RARL Accounting Standard.

Eleven of 14 IASB members agreed with the decision.

Next step

The IASB will discuss any sweep issues that arise in the drafting process.

Intangible Assets (Agenda Paper 17)

The IASB met on 20 March 2025 to discuss:

• an analysis of the feedback and other evidence gathered in the initial stage of the project; and
• possible project objectives and broad groups of topics that the IASB could explore in the project.

The IASB was not asked to make any decisions.

Next step

The IASB will decide on the project direction.

Business Combinations—Disclosures, Goodwill and Impairment (Agenda Paper 18)

The IASB met on 19 March 2025 to discuss respondents’ concerns about conceptual issues in the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment that might arise if an entity is required to disclose information about a business combination’s performance and expected synergies in its financial statements.

The IASB decided to continue to redeliberate the proposed requirements for an entity to disclose information about performance and expected synergies. 

All 14 IASB members agreed with this decision. 

Next step

The IASB will continue to redeliberate the proposals in the Exposure Draft.

Statement of Cash Flows and Related Matters (Agenda Paper 20)

The IASB met on 19 March 2025 to discuss its initial research findings, including: 

• feedback from meetings with stakeholders;
• feedback from meetings with and research from national standard-setters; and
• an analysis of financial statements.

The initial research explored the nature and extent of possible improvements to the requirements in IAS 7 Statement of Cash Flows related to:

1. classification of cash flows;
2. aggregation and disaggregation of cash flow information; 
3. definitions of cash and cash equivalents; 
4. effects of non-cash transactions;
5. methods of reporting operating cash flows;
6. information about commonly used cash flow measures; and
7. the statement of cash flows for financial institutions. 

The IASB also discussed its main observations from the findings, which were that:

1. stakeholders’ issues with classification of cash flows, aggregation and disaggregation of cash flow information, and information about commonly used cash flow measures might share similar solutions. The IASB might resolve these issues by building on the requirements of other IFRS Accounting Standards, particularly those in IFRS 18 Presentation and Disclosure in Financial Statements.
2. information about non-cash transactions is a priority for users. The IASB might therefore consider a variety of approaches to improving the presentation or disclosure of such information, including building on disclosure requirements in IFRS Accounting Standards.
3. changes to the requirement for presenting cash flows from operating activities using the direct or the indirect method are not a priority for most stakeholders.
4. the statement of cash flows of financial institutions provides limited useful information to stakeholders. Consequently, the IASB will consider the costs and benefits to financial institutions when deciding on the applicability of some of the requirements for the statement of cash flows of financial institutions.

The IASB did not make any decisions.

Next step

The IASB will discuss a project plan based on its discussion of the initial research findings and further feedback from consultative groups.

Maintenance and consistent application

Updating IFRS 19 Subsidiaries without Public Accountability: Disclosures (Agenda Paper 32)

The IASB met on 19 March 2025 to discuss:

• the effective date and transition requirements for the prospective amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures (Agenda Paper 32A);
• minor changes to Appendix C to IFRS 19 (Agenda Paper 32A); and
• the balloting of the prospective amendments to IFRS 19 (Agenda Paper 32B).

Other matters (Agenda Paper 32A)

The IASB tentatively decided:

1. to permit an eligible subsidiary to apply the amendments on 1 January 2027, the same effective date as IFRS 19 itself;
2. to permit an eligible subsidiary to apply the amendments early; and
3. to make consequential amendments to Appendix C to IFRS 19.

All 14 IASB members agreed with these decisions.

Due process (Agenda Paper 32B)

All 14 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the amendments to IFRS 19.

No IASB member indicated an intent to dissent from issuing the amendments to IFRS 19.

Next step

The IASB will begin the balloting process for the prospective amendments to IFRS 19.

Strategy and governance

Fourth Agenda Consultation (Agenda Paper 24)

The IASB met on 18 March 2025 to discuss:

• its approach to its Fourth Agenda Consultation; and
• its project plan.

The IASB was not asked to make any decisions.

Next steps

The IASB plans to consult stakeholders about the content of its public consultation and expects to publish a request for information in the fourth quarter of 2025.