The International Accounting Standards Board (IASB) has completed redeliberations of the proposals in the Exposure Draft General Presentation and Disclosures published in December 2019. The IASB expects to publish the new IFRS Accounting Standard in H1 2024 after completing the balloting process. The objective of the new IFRS Accounting Standard is to improve how information is communicated in the financial statements, with a focus on information in the statement of profit or loss.
The IASB met on 15 November 2023 to discuss sweep issues identified in drafting IFRS 18 Presentation and Disclosure in Financial Statements (draft Standard). The issues relate to subtotals and categories, aggregation and disaggregation, and other topics.
Sweep issues related to subtotals and categories (Agenda Paper 21A)
In previous meetings, the IASB specified the assets for which an entity is required to classify income and expenses in the investing category (specified assets). At this meeting, the IASB tentatively decided to clarify that the income and expenses from the specified assets comprise:
Consequently, to maintain consistency between the investing and financing categories, the IASB tentatively decided to clarify that the income and expenses from liabilities arising from transactions involving only the raising of finance comprise:
The IASB also tentatively decided to add application guidance with examples of assets that generate returns individually and largely independently of an entity’s other resources, and those that do not. This application guidance replaces the application guidance the IASB, at its July 2022 meeting, tentatively decided to add on income and expenses from financial assets arising from providing financing to customers.
All of the 13 IASB members present agreed with these decisions. One member was absent.
The IASB also discussed and confirmed the drafting approaches for minor sweep issues related to subtotals and categories.
Sweep issues related to aggregation and disaggregation and other topics (Agenda Paper 21B)
The IASB tentatively decided:
The IASB also discussed and confirmed the drafting approaches for minor sweep issues including management-defined performance measures, aggregation and disaggregation.