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 27–28 April 2021.
The Board met on 28 April 2021 to hear a summary of feedback gathered between October 2020 and February 2021 from banks that use dynamic risk management to manage interest rate risk. The Board discussed feedback on topics that significantly affect the viability and operability of the accounting model for dynamic risk management, including:
The Board will discuss plans for redeliberating the significant topics at the next meeting.
The Board met on 28 April 2021 to continue its discussions on potential refinements to disclosure proposals explored in its 2018 Discussion Paper Financial Instruments with Characteristics of Equity—namely, proposals for disclosure of information about terms and conditions, priority on liquidation and potential dilution. These disclosure proposals relate to financial instruments an entity issues and, if finalised, would be incorporated into IFRS 7 Financial Instruments: Disclosures.
Disclosures: terms and conditions (Agenda Paper 5A)
The Board tentatively decided that, for financial instruments with characteristics of both financial liabilities and equity instruments (except for stand-alone derivatives), an entity would be required to disclose in the notes information about:
All 13 Board members agreed with this decision.
Disclosures: priority on liquidation (Agenda Paper 5B)
The Board discussed proposals to require an entity to disclose information on its capital structure and terms and conditions that indicate the priority on liquidation of some types of financial instruments.
The Board did not make any decisions but sought clarification on some of the proposals.
Disclosures: potential dilution (Agenda Paper 5C)
The Board tentatively decided to require an entity to disclose information about the maximum dilution of ordinary shares in the notes, including:
Twelve of 13 Board members agreed with this decision.
The Board will continue to discuss disclosures for information about priority on liquidation and other topics included in the project plan discussed at the October 2019 Board meeting.
The Board met on 27 April 2021 to discuss feedback on its Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment, specifically feedback from users of financial statements and feedback on improvements to the disclosure requirements in IFRS 3 Business Combinations.
The Board was not asked to make any decisions.
The Board will continue discussing feedback on the Discussion Paper at its next meeting.
The Board met on 27 April 2021 to redeliberate the proposals in the Exposure Draft General Presentation and Disclosures relating to principles of aggregation and disaggregation and roles of the primary financial statements and the notes.
Principles of aggregation and disaggregation and roles of the primary financial statements and the notes (Agenda Paper 21A)
The Board tentatively decided:
The drafting resulting from the decisions in paragraph (b) will clarify that the objective of paragraph 29 of IAS 1 continues to apply, in that entities will be required to disaggregate material information. However, the requirement for presentation in the primary financial statements will refer to information that results in an understandable summary of an entity’s assets, liabilities, equity, income and expenses.
The Board also discussed the implications of digital reporting for the requirements in the new Standard. The Board was not asked to make any decisions.
The Board will continue to redeliberate the project proposals at a future meeting.
The Board met on 27 April 2021 to consider matters discussed at the March IFRS Interpretations Committee (Committee) meeting.
Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38): Finalisation of Agenda Decision (Agenda Paper 12A)
The Board discussed whether any Board member objects to the Committee’s decision to publish Agenda Decision Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38 Intangible Assets).
No Board member objected to the agenda decision. The agenda decision will therefore be published in April 2021 in an addendum to IFRIC Update March 2021.
IFRIC Update (Agenda Paper 12B)
The Board received an update on the Committee’s March 2021 meeting. Details of this meeting were published in IFRIC Update March 2021.
The Board was not asked to make any decisions.