IASB Technical Update

Forum of Firms

Tadeu Cendon

May 2023 – São Paulo

The views expressed in this presentation are those of the presenter, not necessarily those of the IFRS
Foundation, International Accounting Standards Board or the International Sustainability Standards Board.
Copyright © 2023 IFRS Foundation. All rights reserved.
Update on current work
plan
 3

Amendments

Recently issued Forthcoming

Lease Liability in a Sale and

Lack of Exchangeability
Leaseback
(Amendments to IAS 21)
(Amendments to IFRS 16)

Non-current Liabilities with Covenants Supplier Finance Arrangements

(Amendments to IAS 1) (Amendments to IAS 7 and IFRS 7)

International Tax Reform—

Pillar Two Model Rules
(Amendments to IAS 12)
 4

Consultations
Recently published Forthcoming

Project Summary Expected Q2 2023:

Targeted Standards-level Review of
Disclosures • Request for information on PIR of IFRS 9
—Impairment
Feedback Statement
PIR of IFRS 9—Classification and • Request for information on PIR of IFRS 15
Measurement —Revenue from Contracts with Customers

Exposure draft proposing narrow- Expected H2 2023:

scope amendments to IFRS 9 and • Exposure draft proposing amendments to
IFRS 7 IAS 32 Financial Instruments with
Characteristics of Equity
Comments due by 19 July 2023
Standard-setting projects
 6

Overview: standard-setting projects

IFRS Accounting
Publish Discuss Decide
feedback on Standard
Exposure Exposure project
Draft Draft direction Amendments to
the Standard

Financial Instruments Review of the IFRS for

with SMEs Accounting Management Subsidiaries without Public
Characteristics of Equity Standard Commentary Accountability: Disclosures

Dynamic Risk Management Primary Financial Statements

Business Combinations—
Disclosures, Goodwill and Rate-regulated Activities
Impairment
Maintenance projects
 8

Overview: maintenance projects

Publish Discuss Decide

Exposure feedback on project
Exposure direction Issue
Draft Draft
amendment

Provisions─ Annual Amendments to IFRS

Targeted Improvements 9: Classification and Lack of Exchangeability
Improvements Measurement
Climate-related Risks Supplier Finance
in Financial Arrangement
Statements
International Tax Reform—
Pillar Two
Model Rules

International Tax Reform—Pillar Two Model Rules
Objective
• Respond to stakeholders’
concerns about the
potential implications of the
imminent implementation of
the OECD’s Pillar Two
model rules for income tax
accounting
9
Proposals Next milestone
• Introduce a temporary • Issue Amendment to IAS12
exception to the accounting
for deferred taxes arising
from the implementation of
the rules
• Require targeted
disclosures for affected
companies

Supplier Finance Arrangements
Objective
• Provide information to
enable investors to assess
the effects of supplier
finance arrangements on a
company’s liabilities, cash
flows and exposure to
liquidity risk
10
Proposals Next milestone
• Describe the arrangements • Issue IFRS Accounting
for which the proposed Standard amendments
disclosure would be
required
• Add qualitative and
quantitative disclosure
requirements
• Highlight the required
disclosure of liquidity risk
and risk management
 11

Lack of Exchangeability

Objective Proposals Next milestone

• Improve usefulness of • Specify when • Issue IFRS Accounting
information provided by exchangeability is lacking Standard amendments
requiring a consistent and how to make that
approach to determining assessment
whether a currency is
• Estimate the spot exchange
exchangeable into another
rate when exchangeability
currency and the exchange
is lacking
rate to use when it is not
• Disclose how the lack of
exchangeability affects
financial performance,
financial position and cash
flows

Provisions—Targeted Improvements
Objective
• Develop proposals for three
targeted amendments to
IAS 37 Provisions,
Contingent Liabilities and
Contingent Assets
12
Areas of focus Next milestone
• Align requirements for • Decide project direction
identifying liabilities with
Conceptual Framework
• Clarify which costs to
include in measure of a
provision
• Specify whether discount
rates used should reflect
non-performance risk
Research projects
 14

Overview: research projects

Early
Issue Decide
stage of
Discussion project
research
Paper direction
phase

1 2 3

1 Equity Method

2 Extractive Activities

3 Business Combinations under Common Control

 15

Equity Method
Objective Project update Next steps
• To assess whether application
questions with the equity method, • Continue discussion
Ownership changes Impairment
as set out in IAS 28 Investments in of application
Associates and Joint Ventures, can questions
be addressed in consolidated and Recognition of losses Deferred taxes
individual financial statements by
identifying and explaining principles Transactions with (and
in IAS 28 Contingent
between) equity
consideration
Project approach accounted investments

Apply the
Identify
Identify the principles to
application
principles the application
questions
questions
Post-implementation
reviews
 17

Post-implementation reviews

Recently completed PIR of IFRS 9—Classification and Measurement

PIR of IFRS 9—Impairment

Ongoing PIR of IFRS 15 Revenue from Contracts with Customers

PIR of IFRS 16 Leases

Forthcoming PIR of IFRS 9—Hedge Accounting

New requirements
 19

What is required when?

1 January 2023 1 January 2024

• IFRS 17 Insurance Contracts • Lease Liability in a Sale and Leaseback
(Amendments to IFRS 16)
• Definition of Accounting Estimates
• Classification of Liabilities as Current or Non-
• Disclosure of Accounting Policies
current (Amendments to IAS 1)
• Deferred Tax related to Assets and Liabilities
• Non-current Liabilities with Covenants
arising from a Single Transaction
(Amendments to IAS 1)
(Amendments to IAS 12)
• Supplier Finance Arrangements
• International Tax Reform—Pillar Two Model
(Amendments to IAS 7 and IFRS 7)*
Rules (Amendments to IAS 12)*

* To be published by end of May 2023

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