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The Board began to redeliberate proposals in the Exposure Draft General Presentation and Disclosures in March 2021. The Exposure Draft, published in December 2019, proposes to improve how information is communicated in the financial statements, with a focus on information in the statement of profit or loss. The Board discussed feedback on the Exposure Draft in December 2020 and January 2021.

IASB® Update December 2021

The IASB met on 15 and 16 December 2021 to redeliberate some of the proposals in the Exposure Draft General Presentation and Disclosures relating to:

  • unusual income and expenses—Agenda Paper 21A; and
  • income and expenses classified in the investing category—Agenda Paper 21B.

Unusual income and expenses (Agenda Paper 21A)

The IASB tentatively decided:

  1. to explore how to proceed with a definition of ‘unusual income and expenses’. All 12 IASB members agreed with this decision.
  2. to remove the reference to ‘limited predictive value’ from the definition of ‘unusual income and expenses’, and clarify in the Standard that it is a necessary characteristic of unusual income and expenses, not the sole characteristic. Eleven of 12 IASB members agreed with this decision.
  3. to develop the application guidance accompanying the definition of ‘unusual income and expenses’:
    1. to clarify that the definition means that ‘unusual income and expenses’ can be dissimilar in type or amount from income and expenses expected in the future;
    2. to help an entity to assess whether similar income or expenses will arise in the future, based on guidance on the assessment of future transactions and other events in other IFRS Accounting Standards; and
    3. to explain that in considering whether income or expenses are similar to expected future income or expenses, an entity would consider characteristics of the income and expenses, including the underlying event or transaction that gives rise to income or expenses.

    Eleven of 12 IASB members agreed with these decisions.

Income and expenses classified in the investing category (Agenda Paper 21B)

The IASB tentatively decided:

  1. to retain the proposal for entities to classify in the investing category income and expenses from assets that generate returns individually and largely independently of other resources held by an entity. Eleven of 12 IASB members agreed with this decision.
  2. to retain the proposed application guidance in the Exposure Draft. Ten of the 11 IASB members present agreed with this decision. One IASB member was absent.
  3. to add further application guidance stating that:
    1. income and expenses arising from individual assets and disposal groups classified as held for sale would not be classified in the investing category. Ten of the 11 IASB members present agreed with this decision. One IASB member was absent.
    2. income and expenses arising from business combinations would not be classified in the investing category because they do not arise from assets that generate returns individually or largely independently of other resources held by an entity. Eight of the 11 IASB members present agreed with this decision. One IASB member was absent.
    3. negative returns, such as those arising from unfavourable exchange rates or negative interest rates, are classified in the same category as positive returns arising from the asset. Similarly, negative interest expense on liabilities is classified in the same category as positive interest expense. All 11 IASB members present agreed with this decision. One IASB member was absent.
  4. to classify income and expenses from associates and joint ventures in the investing category. Nine of 12 IASB members agreed with this decision
  5. to remove the discussion of the objective from the requirements in the Standard and explain in the Basis for Conclusions the reasons for including specific items in the investing category, without referring to that explanation as being an ‘objective’. Ten of 12 IASB members agreed with this decision.
  6. to retain the label ‘investing category’ for that category. Eight of 12 IASB members agreed with this decision.
  7. not to proceed with the proposed use of the defined term ‘income and expenses from investments’. Ten of 12 IASB members agreed with this decision.