Research Programme

After the 2011 Agenda Consultation, the Board adopted a more evidence-based approach to setting IFRS Standards. In other words, the Board does not start a standard-setting project before carrying out research to gather sufficient evidence that an accounting problem exists, that the problem is sufficiently important that standard-setting is required and that a feasible solution can be found.

In the light of feedback from the 2015 Agenda Consultation, the Board refined its research programme. The following summarises the research process. A fuller description can be found in Agenda Paper 8 (Appendix E) of the July 2016 Board meeting. 

  • The objective of a research project is to gather evidence to establish whether standard-setting is required. In contrast, the objective of a standard-setting project is to develop or amend a Standard.
  • Research projects do not automatically have a lower priority than standard-setting projects.
  • The research pipeline lists all the research projects on which the Board expects to carry out work before the next Agenda Consultation, which is expected to start around 2021. If circumstances change, for example if significant new issues emerge, the Board may need to add to the pipeline.
  • To avoid placing unnecessary burdens on stakeholders, the Board is unlikely to seek public feedback on research findings of all projects. The Board will seek such feedback only if it is needed.
  • The evidence obtained from research projects will be summarised concisely and visibly, and will be made readily retrievable.
  • A project resulting from a Post-implementation Review (PIR) may, depending on the nature of the topic and the extent of the evidence provided by the PIR, be a standard-setting project, a research project or a maintenance project.

After considering the feedback from the 2015 Agenda Consultation, the Board created a research pipeline of future research projects. These are not currently active, but the Board expects to start, or restart, work on them before the next Agenda Consultation, which is expected to start around 2021.

The active research projects are listed on the work plan.

Research Pipeline

After considering the feedback from the 2015 Agenda Consultation, the Board created a research pipeline of future research projects. These are not currently active, but the Board expects to start, or restart, work on them before the next Agenda Consultation, which is expected to start around 2021.

We are undergoing the process of moving our research projects to the new website, but until then all projects will remain accessible on our archive site.

Research project Description Comments
Equity Method The equity method is used in accounting for investments in associates and joint ventures and is permitted for use in separate financial statements. The project had been assessing whether practice problems could be addressed by amending the equity method or whether a more fundamental review is needed. The Board plans no further work until the Post-implementation Review (PIR) of IFRS 11 Joint Arrangements is undertaken.

Pollutant Pricing Mechanisms

 

This project had been assessing whether the Board should consider addressing any diversity that may exist in accounting for pollutant pricing mechanisms (including emissions trading schemes). The Board plans no further work until the revised Conceptual Framework is closer to finalisation.
Provisions This project had been assessing whether the Board should consider amending any aspects of IAS 37 Provisions, Contingent Liabilities and Contingent Assets in the light of possible changes to the Conceptual Framework. The Board has completed its discussion of the staff’s initial research. It plans no further work until the revised Conceptual Framework is closer to finalisation.

Extractive Activities

 

This project would assess whether the Board should introduce accounting requirements for exploration, evaluation, development and production of minerals, and oil and gas. No work has yet been done on this project.

Variable and Contingent Consideration

The Board will determine the scope and objective of this project when it becomes an active project.

Once the Board has considered this topic, there may be a need for some follow up research on risk-sharing and collaborative arrangements.
The IFRS Interpretations Committee has considered this topic but has been unable to conclude on all of the issues because of interactions between several Standards.

Feasibility studies Description Comments
High Inflation: Scope of
IAS 29
The project’s objective will be to assess whether it would be feasible to extend the scope of IAS 29 Financial Reporting in Hyperinflationary Economics to cover economies subject to only high inflation, without amending other requirements of IAS 29. If the research establishes that it would not be feasible to extend the scope of IAS 29 in this way, the staff expects to recommend no work on IAS 29.
Pension Benefits that Depend on Asset Returns The project’s objective will be to assess whether it would be feasible to develop an approach that focuses on the relationship between the cash flows included in the measurement of those benefits and the discount rate. If the research establishes that this approach would not be feasible, the staff expects to recommend no work on pensions.
SMEs that are Subsidiaries The project’s objective will be to assess whether it would be feasible to permit SMEs to use the recognition and measurement requirements in IFRS Standards and the disclosure requirements in the IFRS for SMEs. If the research establishes that this approach would not be feasible, the staff expects to recommend no work in this area.

Post-implementation Reviews

The Board carries out a Post-implementation Review (PIR) of each new IFRS Standard or major amendment. A PIR is an opportunity for the Board to assess the effect of the new requirements of an IFRS Standard on investors, preparers and auditors. In undertaking a PIR the Board:

  1. considers important or contentious issues in the development of the IFRS Standard;
  2. considers issues that have come to the Board’s attention since issue; and
  3. identifies areas where unexpected costs or implementation problems were encountered.

The Board normally begins a PIR after the IFRS Standard has been implemented for two years internationally, which is generally about 30-36 months after the effective date. The first phase of a PIR involves the initial assessment of the matters to be examined. The Board consults publicly on the matters identified in the first phase of the PIR. It also reviews relevant academic studies and other reports and may also conduct surveys and other outreach.

At the end of the PIR the Board publishes a Report and Feedback Statement summarising its findings, and sets out the steps it plans to take, if any, as a result of the PIR. The next steps may result in a research, standard-setting or maintenance project, depending on the nature of the topic and the evidence provided by the PIR.

PIRs in progress

Project
IFRS 13 Fair Value Measurement

Forthcoming PIRs

Project
IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements,
IFRS 12 Disclosure of Interests in Other Entities
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

Completed PIRs

Project Document Completed
IFRS 3 Business Combinations Report and Feedback Statement: Post-implementation Review: IFRS 3 Business Combinations 17 June 2015
IFRS 8 Operating Segments Report and Feedback Statement: Post-implementation Review: IFRS 8 Operating Segments 18 July 2013

 

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