This IASB Update highlights preliminary decisions of the International Accounting Standards Board (Board). Projects affected by these decisions can be found on the work plan. The Board's final decisions on IFRS® Standards, Amendments and IFRIC® Interpretations are formally balloted as set out in the IFRS Foundation's Due Process Handbook.
The Board met remotely on 16–17 February 2021.
The Board met on 16 February 2021 to discuss:
The Board discussed potential refinements to disclosure proposals explored in its 2018 Discussion Paper Financial Instruments with Characteristics of Equity—namely, proposals for information about priority on liquidation, potential dilution, and terms and conditions.
The Board was not asked to make any decisions but directed the staff to further consider the objectives of the proposed disclosures and their scope.
The Board discussed challenges in accounting for financial instruments with obligations that arise only on liquidation of an entity. The Board also discussed potential classification, presentation and disclosure requirements to address those challenges.
The Board tentatively decided not to change how such instruments should be classified; but instead to develop presentation and disclosure requirements in relation to them.
Twelve of 13 Board members agreed with this decision.
The Board will continue to discuss these topics at a future meeting.
The Board met on 16 February 2021 to discuss sweep issues identified in preparing for balloting the Exposure Draft of a revised IFRS Practice Statement 1 Management Commentary (Practice Statement).
The Board tentatively decided that the Practice Statement should state that information is material if omitting it from management commentary, or misstating or obscuring it within management commentary, could reasonably be expected to influence decisions that investors and creditors make on the basis of that management commentary and the related financial statements. Seven of 12 Board members present agreed with this decision. One member was absent.
The Board also discussed guidance clarifying the circumstances in which information provided in financial statements would also be provided in management commentary. The Board was not asked to make any decisions.
The Board discussed how to:
The Board was not asked to make any decisions.
The Board aims to publish the Exposure Draft in April 2021.
The Board met on 17 February 2021 to discuss extractive activities in the minerals and oil and gas industries, the common accounting challenges relating to those extractive activities and the reasons for those challenges. This discussion will help the Board to decide, at a future meeting, whether to replace or amend IFRS 6 Exploration for and Evaluation of Mineral Resources.
The Board considered a summary of:
The Board was not asked to make any decisions.
The Board will begin its discussion on the scope of the project.
The Board met on 17 February 2021 to discuss due process steps—including permission to begin the balloting process—for the exposure draft being developed for the project.
All 13 Board members confirmed they were satisfied the Board has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the exposure draft.
One Board member indicated an intention to dissent from the proposals in the exposure draft.
Given that the exposure draft proposes a reduction in the disclosures that entities within its scope would otherwise be required to make applying IFRS Standards, in setting the comment period the Board noted:
In the light of these considerations, the Board decided to allow 180 days for comment on the exposure draft. Seven Board members agreed with this decision.
The staff will prepare the exposure draft for balloting.
The Board met on 17 February 2021 to receive an update on the SME Implementation Group’s meeting that took place on 4–5 February 2021. More information can be found on the SME Implementation Group’s meeting page.
The Board was not asked to make any decisions.
At a future meeting the Board will consider a project plan for the next stage of its second comprehensive review of the IFRS for SMEs Standard.
The Board met on 17 February 2021 to review the due process steps taken in developing the draft request for information.
All 13 Board members confirmed they were satisfied the Board has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to publish the request for information.
The Board:
The Board expects to publish the request for information in March 2021.