IASB Technical update packThe views expressed in this presentation are those of the presenter, not necessarily those of the International Accounting Standards Board or the IFRS Foundation.
Copyright © 2021 IFRS Foundation. All rights reserved.
IFRS® Foundation
Overview
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Management Commentary
Disclosure Initiative—Subsidiaries without
Objective
statement of profit or loss
Main proposals
• Disaggregation
2021
expenses
*These papers are discussed during October 2021 Board meeting, refer to IASB Update October 2021
for the Board's decision.
the statement of profit or loss
Linkages between topics
efficiently
8
8
categories (except associates and
the notes
What is confirmed from
the Exposure Draft (ED)?
financing and income tax
default category, includes, but is
not limited to main business
activities and includes volatile
excluded from operating:
equivalents from financing to
losses from derivatives and
category
• Classification of JVs
What is confirmed from
IAS 1 requiring to
• Emphasise that single dissimilar
application of disaggregation
primary financial statements and
function*
What is confirmed from
MPMs to include a subtotal of
income and expense used in
the numerator or denominator
meets the definition of MPM
• Remove the reference to
specified by IFRS Standards
2021 Board meeting
What is confirmed from the
ED?
subtotal as the starting point for the indirect
method of reporting cash flows from
operating activities
financing activities, and dividends received
classified as investing activities in the
statement of cash flows
• Classification of interest received in the
statement of cash flows
comprehensive income
Presentation of Financial Statements
Disclosure of Interests in Other Entities, IAS 33
Earnings Per Share and IAS 34 Interim
Financial Reporting
• Transition provisions
• Effective date
feedback
2013–2015 2015–2019 Q1 2020 Q2–Q4 2020 2021–Q1 2022
Development of
disclose the performance against those objectives
• Some targeted improvements to existing standards
• Retain impairment-only model for goodwill
• Simplify impairment test
• Do not change recognition of intangibles separately from goodwill



15What is the Board investigating?
• In June 2021, the Board tentatively decided to retain the objective of the project unchanged from that
described in the Discussion Paper. The objective is to explore whether companies can, at a reasonable
cost, provide investors with more useful information about the acquisitions those companies make. The
Board also tentatively decided to make no changes to the project scope. The Board views its preliminary
views as a package that meets the project objective.
• The Board decided on a project plan at its meeting in September 2021. As part of that project plan the
Board is prioritising analysis of feedback on:
• disclosures about business combinations; and
• whether to retain the impairment-only model or whether to reintroduce amortisation for goodwill (the
subsequent accounting for goodwill).
• The Board plans to:
• make tentative decisions about disclosures to help the Board get a better understanding of the
disclosure package it could develop; and
• research particular aspects of the feedback on the subsequent accounting for goodwill.
• This analysis will help the Board decide on the subsequent accounting for goodwill. The Board is not
currently developing an amortisation model.
16
Board
investigating?
• In October 2021 the Board tentatively decided that, based on the Conceptual
Framework for Financial Reporting, information can be required in financial
statements about the benefits an entity’s management expects from a business
combination and the extent to which management’s objectives are being met.
• However, the Board is still investigating whether there might be practical reasons
to not require the disclosure of such information in financial statements, for
example that the information might be:
• Commercially sensitive
• Forward-looking in some jurisdictions and therefore might result in an entity
being subject to additional litigation risk; or
• Difficult or costly to audit.
• The Board is also discussing the feedback on specific aspects of the Board’s
preliminary views.
• Feasibility of estimating a useful life of goodwill
• In 2004, when moving to an impairment-only model, the Board noted that
respondents to the Exposure Draft generally accepted that ‘the useful life
of acquired goodwill cannot be predicted with a satisfactory level of
reliability, nor can the pattern in which that goodwill diminishes be
known.’
• Feedback to the Discussion Paper was more mixed than in 2004, which
indicates a possible shift in stakeholder views.
• The Board is therefore investigating how feasible it is to estimate a useful
life of goodwill and how useful that information would be.
• The effect of transition to an amortisation and impairment model
• A few respondents commented on transition if amortisation is
reintroduced, with many of these concerned about the potential impact of
reintroducing amortisation on entities’ reported financial positions.
• The Board is therefore investigating the effect reintroducing amortisation
might have.
19
End of comment
the strategic direction and balance of the Board’s activities
the criteria for assessing the priority of financial reporting
issues that could be added to the Board’s work plan
new financial reporting issues that could be given priority in the
Board’s work plan



More focus
Leave unchanged
• The Board’s strategic direction is about right; consider some minor changes to rebalance the
level of focus.
to respond to emerging issues.
• Partnering with national standard-setters could help increase the Board’s capacity in some areas.
Activity Current level of focus Feedback
Research and standard-setting projects 40%–45% Decrease or leave unchanged
Maintenance and consistent application of IFRS Standards 15%–20% Increase or leave unchanged
The IFRS for SMEs Standard 5% Leave unchanged
Digital financial reporting 5% Increase
Understandability and accessibility 5% Increase
Stakeholder engagement 20%–25% Leave unchanged
21
Third Agenda Consultation—feedback overview (2/3)
• Stakeholders generally agreed with the Board’s proposed criteria for assessing
the priority of financial reporting issues.
• Stakeholders would like to understand how the criteria have been applied.
• Consider including all proposed criteria in the Due Process Handbook.
• We should not add too many new projects to the work plan as we will need
capacity to deal with emerging issues and interaction with the ISSB.
• Some projects are related and could be worked on at the same time—for
example, intangible assets and cryptocurrencies.
• The IASB should work on climate-related risks and pollutant pricing
mechanisms together with the ISSB.
22
Some of the most commonly suggested projects (in alphabetical order)
Cryptocurrencies
assets Going concern
• Detailed feedback analysis for the November Board meeting is available on our
2021
Global baseline
Investor focus
(enterprise value)
MembersChair Observers
International Accounting
Standards Board
*
1 Enhanced prototype climate standard
2 Enhanced prototype presentation standard
3 Digitisation strategy
8 Other items to inform standard-setting agenda
Source: TRWG webcast
Exposure Draft Consultation
Replace disclosure requirements in IFRS 13 Fair Value Measurement and
IAS 19 Employee Benefits with a new set of disclosure requirements
developed applying the proposed Guidance
New approach for the Board to use when developing and drafting
disclosure requirements in IFRS Standards (proposed Guidance)


Global Preparers Forum (GPF)
The GPF’s Role
• The GPF was created as a body that would be independent of
the IASB and the IFRS Foundation
• The specific aim is to provide the IASB with regular input from the
international community of preparers of financial statements – Feedback and input on the Board’s technical activities
– May also be consulted on strategic matters
• On-line resources: – Link to GPF web-page
– Link to GPF Constitution
@IFRSFoundation