The International Accounting Standards Board (IASB) is redeliberating proposals in the Exposure Draft General Presentation and Disclosures. 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 IASB discussed feedback on the Exposure Draft in December 2020 and January 2021.
The IASB met on 23 May 2023 to redeliberate the proposals in the Exposure Draft General Presentation and Disclosures on:
Associates and joint ventures accounted for using the equity method (Agenda Paper 21A)
The IASB reconfirmed its tentative decision to require all entities to classify, in the investing category in the statement of profit or loss, income and expenses from associates and joint ventures accounted for using the equity method.
Thirteen of 14 IASB members agreed with this decision.
The IASB tentatively decided to provide transition requirements that will permit an entity to elect to measure investments in associates or joint ventures at fair value through profit or loss in accordance with IFRS 9 Financial Instruments when the investment is held by, or is held through, an entity that is a venture capital organisation, a mutual fund, unit trust and similar entities including investment-linked insurance funds (see paragraph 18 of IAS 28 Investments in Associates and Joint Ventures).
All 14 IASB members agreed with this decision.
The IASB tentatively decided to withdraw the new paragraph 38A of IAS 7 Statement of Cash Flows proposed in the Exposure Draft. As a result, an entity would be required to classify in a single category dividends received from associates and joint ventures accounted for using the equity method, applying the requirements applicable to the entity for other dividends received.
Thirteen of 14 IASB members agreed with this decision.
Issues related to Management Performance Measures and IFRS 8 Operating Segments (Agenda Paper 21B)
The IASB tentatively decided:
Eleven of 14 IASB members agreed with this decision.
The IASB asked the staff to consider the relationship between paragraph B83 and the general requirement for presentation of notes in a systematic manner in paragraph 97 of the Exposure Draft when drafting the proposed Standard.
The IASB discussed other outstanding issues related to management performance measures for which the staff had concluded no further action was required, including:
The IASB was not asked to make any decisions.
The IASB discussed a consequential amendment to paragraph 23(f) of IFRS 8, which refers to a requirement in IAS 1 Presentation of Financial Statements to disclose the nature and amount of items of income or expense separately when they are material.
The IASB was not asked to make any decisions.
IFRS Accounting Standard
International Accounting Standards Board May 2023