This IASB Update highlights preliminary decisions of the International Accounting Standards Board (IASB). Projects affected by these decisions can be found on the work plan. The IASB's final decisions on IFRS® Accounting Standards, Amendments and IFRIC® Interpretations are formally balloted as set out in the IFRS Foundation's Due Process Handbook.
The IASB met on 25–26 October 2023.
The IASB met on 25 October 2023 to discuss the types of risk management activities for which the Dynamic Risk Management (DRM) model would be appropriate and provide useful information.
The IASB was not asked to make any decisions.
The IASB will continue its discussion on the topics identified in the project plan.
The IASB met on 25 October 2023:
Survey on the direct (no direct) relationship concept—Additional feedback (Agenda Paper 9A)
The IASB tentatively decided to include in the prospective Accounting Standard guidance on how to account for regulatory returns on an asset not yet available for use that compensate for borrowing costs an entity has capitalised. The guidance would illustrate how an entity accounts for such regulatory returns if:
Twelve of the 13 IASB members present agreed with this decision. One member was absent.
Boundary of a regulatory agreement (Agenda Paper 9B)
The IASB tentatively decided that the prospective Accounting Standard would:
All of the 13 IASB members present agreed with these decisions. One member was absent.
The IASB also tentatively decided not to add more guidance on how an entity assesses its practical ability to renew, and other parties’ practical ability to cancel, a regulatory agreement.
Eleven of the 13 IASB members present agreed with this decision. One member was absent.
The IASB will continue to redeliberate the project proposals, including whether to add more guidance on how an entity identifies and measures cash flows within the boundary of a regulatory agreement.
The IASB met on 26 October 2023 to discuss whether its tentative decisions on application questions for investments in associates apply to investments other than those in associates accounted for using the equity method.
Towards an exposure draft—Implications of applying the IASB’s tentative decisions to investments in subsidiaries in separate financial statements (Agenda Paper 13A)
The IASB tentatively decided that its tentative decisions on application questions for investments in associates apply when a parent elects to use the equity method to account for its investments in subsidiaries in separate financial statements.
Twelve of the 13 IASB members present agreed with this decision. One member was absent.
Towards an exposure draft—Implications of applying the IASB’s tentative decisions to investments in joint ventures (Agenda Paper 13B)
The IASB tentatively decided that its tentative decisions on application questions for investments in associates apply to investments in joint ventures.
All of the 13 IASB members present agreed with this decision. One member was absent.
The IASB will discuss possible improvements to disclosure requirements for investments other than those in associates accounted for using the equity method.
The IASB met on 26 October 2023 to discuss stakeholder feedback on the Exposure Draft Amendments to the Classification and Measurement of Financial Instruments, which proposes amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures.
Following stakeholder feedback, the IASB discussed possible ways of clarifying the application guidance on:
The IASB was not asked to make any decisions.
The IASB will continue its discussions on the topic.
The IASB met on 25 October 2023 to discuss sweep issues identified in drafting IFRS 18 Presentation and Disclosure in Financial Statements related to aggregation and disaggregation and other topics. The IASB tentatively decided:
The IASB discussed and confirmed the drafting approaches for minor sweep issues, except in relation to the disclosure of specified expenses by nature by an entity that presents one or more function line items. The IASB tentatively decided to confirm that such an entity will be required to disclose in a single note the amounts for these expenses that are included in each line item in the operating category only. In addition, the entity will be required to include in the same note two disclosures for each specified expense:
Twelve of the 13 IASB members present agreed with these decisions. One member was absent.
The IASB will discuss other sweep issues at a future meeting.
The IASB met on 25 October 2023 to redeliberate the proposals in the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard (Exposure Draft).
Proposed revised Section 23 Revenue from Contracts with Customers (Agenda Paper 30A)
The IASB tentatively decided to revise Section 23 of the IFRS for SMEs Accounting Standard (Standard) to reflect the principles in IFRS 15 Revenue from Contracts with Customers.
All of the 13 IASB members present agreed with this decision. One member was absent.
Simplification of the control model in Section 9 Consolidated and Separate Financial Statements (Agenda Paper 30B)
The IASB tentatively decided to clarify how an entity applies the rebuttable presumption in paragraph 9.5 of the Standard.
All of the 13 IASB members present agreed with this decision. One member was absent.
Recognition of development costs (Agenda Paper 30C)
The IASB tentatively decided to retain the requirements in the Standard for recognising development costs.
Seven of the 13 IASB members present agreed with this decision. One member was absent.
Recognition of borrowing costs (Agenda Paper 30D)
The IASB tentatively decided to retain the requirements in the Standard for recognising borrowing costs.
Ten of the 13 IASB members present agreed with this decision. One member was absent.
Recent amendments to full IFRS Accounting Standards (Agenda Paper 30E)
The IASB tentatively decided to expose for public comment a proposal to align the Standard with:
Eight of the 13 IASB members present agreed with this decision. One member was absent.
The IASB will continue to redeliberate the proposals in the Exposure Draft as set out in the project plan.
The IASB will publish a second exposure draft as part of this second comprehensive review following its decisions on Agenda Paper 30E.
The IASB met on 26 October 2023 to continue its discussion about some of the disclosure requirements proposed in its Exposure Draft Subsidiaries without Public Accountability: Disclosures. The IASB tentatively decided:
All of the 13 IASB members present agreed with this decision. One member was absent.
The IASB will discuss any further sweep issues that arise in the drafting process.
The IASB met on 26 October 2023 to consider three agenda decisions discussed at the September 2023 meeting of the IFRS Interpretations Committee (Committee), and to receive an update on that meeting.
The IASB was asked whether it objected to the Agenda Decision Premiums Receivable from an Intermediary (IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments).
No IASB member objected to the Agenda Decision.
The Agenda Decision will be published in October 2023 in an addendum to IFRIC Update September 2023.
The IASB was asked whether it objected to the Agenda Decision Homes and Home Loans Provided to Employees.
No IASB member objected to the Agenda Decision.
The Agenda Decision will be published in October 2023 in an addendum to IFRIC Update September 2023.
The IASB was asked whether it objected to the Agenda Decision Guarantee over a Derivative Contract (IFRS 9).
No IASB member objected to the Agenda Decision.
The Agenda Decision will be published in October 2023 in an addendum to IFRIC Update September 2023.
The IASB received an update on the Committee’s September 2023 meeting. Details of this meeting were published in IFRIC Update September 2023.
The IASB was not asked to make any decisions.