IASB update

Linda Mezon-Hutter, IASB Vice-Chair

The views expressed in this presentation are those of the presenter, not necessarily those of the IFRSFoundation, International Accounting Standards Board or the International Sustainability Standards Board.
Copyright © 2023 IFRS Foundation. All rights reserved.

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1

Recent highlights

2

What is keeping us busy?

3

Research and standard-setting projects

4

Maintenance and consistent application

5

Post-implementation reviews

6

What will keep you busy?

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Recent highlights• IASB completed technical work on two new IFRS
Accounting Standards• Started balloting process• Expected date of issue – H1 2024
• Effective date - annual reporting periods beginning on
or after 1 January 2027
• New maintenance project• Objective – explore potential for narrow-scope
amendments to better reflect PPAs
• Project scope:✓ own-use requirements for physical PPAs
✓ hedge accounting requirements for Virtual PPAs

Primary FinancialStatements[will replace IAS 1]

Subsidiaries without Public
Accountability: Disclosures

Power Purchase
Agreements

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Driving forward - What’s keeping us busy?

Research projects

Standard-settingprojects

Maintenance andConsistentApplicationPostImplementation
Reviews

Research and standardsetting projects

6Current projects at different stages
Research

Early
stage ofresearch
phase

Later
stage ofresearch
phaseStandard-setting

Decideproject
direction

Business Combinations
under Common Control

Extractive activities✓ Stopping work on project✓ Remove IFRS 6 temporary status in next
Annual Improvements volume✓ Publish project summary

PublishExposure
Draft

Financial Instrumentswith Characteristics ofEquity
Business
Combinations—Disclosures, Goodwill
and Impairment

Dynamic Risk
Management
Equity Method

Issue
IFRS
StandardDecideproject
direction

Management
CommentaryRate-regulatedActivities

Primary Financial
Statements

Review of IFRS for
SMEs AccountingStandard

Subsidiaries
without Public
Accountability:
Disclosures

Technical work
concluded

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Financial Instruments with Characteristics of Equity
What next?
Publish Exposure Draft
in November 2023

FICE
Discussion
Paper

Clarify Principles

Examples &guidance
Disclosures

FICE
ExposureDraft

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Business Combinations—Disclosures, Goodwill and Impairment
Balancing stakeholders’ needs
What next?
Betterinformation

Commercial
sensitivity

Comparability
Pragmatic

Publish Exposure Draft
in H1 2024

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Dynamic Risk Management (DRM)
What next?
• Continue deliberations

DRM

Treasury&Risk Management

Discussion
PaperAccounting• Publish Exposure Draft
in 2025

DRMModel10Equity Method
Why started?

What’s happened?
What next?
•✓ Develop answers toapplication questions
about the equitymethod✓ Identified applicationquestions✓ Derived principles
from IAS 28✓ Applied principles toapplication questions

Discuss implications ofdecisions on joint venturesand subsidiaries in separate
financial statements

11Management Commentary
Why started?

✓ Overhaul IFRS
Practice Statement 1—build on innovationsin narrative reportingand focus on capital
market needs

What happened
recently?

✓ Strong investor
support for project✓ Calls to work together
with ISSB✓ IASB discussed
comparison withIntegrated Reporting
Framework

What next?
•Decide project direction

12Rate-regulated Activities
Why started?

✓ Without information
about timing
differences, investors
unable to understandtheir effects oncompany’s financial
statements

What are main
proposals?

✓ Reflect compensation
for supplied goods orservices in period
when supplied✓ Recognise regulatory
assets and liabilities,
and regulatory income
and expenses

What next?
•Continue redeliberations•Publish new IFRS AccountingStandard in 2025

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Review of IFRS for SMEs Accounting Standard
Balancing stakeholders’ needs
What next?
Simplification

User needs

Cost-effective
Relevant•

Redeliberate proposals•

Publish third edition of IFRS
for SMEs AccountingStandard in 2025

Maintenance andconsistent application

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Overview: maintenance projects
Discuss
feedback onExposure
Draft

PublishExposure Draft

PowerPurchase
Agreements

Provisions─Targeted
Improvements

Newproject

Climate-related andOther Uncertainties
in the Financial
Statements

AnnualImprovements toIFRS AccountingStandards
ED published in
September

Amendments to IFRS 9:Classification andMeasurement

Issueamendment

Post-implementation
reviews

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Post-implementation reviews

Recently completed

PIR of IFRS 9—Classification and Measurement

PIR of IFRS 9—Impairment

Feedback analysis

PIR of IFRS 15 Revenue from Contracts with Customers

PIR of IFRS 16 Leases

Forthcoming

PIR of IFRS 9—Hedge Accounting

What will keep you busy?

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Driving forward – What will keep you busy?
What is (or will be) out for comment into H1 2024?

OctoberNovember

December

H1 2024

Request for information on
PIR of IFRS 15 —Revenue
from Contracts with
Customers

Exposure draft Financial
Instruments with
Characteristics of Equity

Exposure draft Annual
Improvements to IFRS
Accounting Standards

Exposure draft Business
Combinations—Disclosures,
Goodwill and Impairment

Comment period
ended on27 October

Publishing
NovemberComments dueby 11 December

Publishing
H1 2024

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