ThinkTWENTY20

Amendments to IFRS 17, “Insurance Contracts.” Since IFRS 17 was issued in May 2017, the Board has been monitoring the implementation of that standard and has learned about concerns and implementation challenges. The Board had previously indicated that it would consider whether additional action is needed to address matters arising during implementation. The criteria against which any possible amendment would be considered were agreed on at the October 2018 meeting. An exposure draft of proposed amendments is currently expected in the second quarter of 2019.

Changes in accounting policies and estimates. This project aims to clarify the distinction between a change in an accounting policy and a change in an accounting estimate, in relation to the application of IAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors.” The exposure draft “Accounting Policies and Accounting Estimates (Proposed amendments to IAS 8)” was published on September 12, 2017, with comments requested by January 15, 2018.  Early feedback on the ED was discussed in 2018.

Disclosure initiative — Overview. Provides a summary of projects that are part of the IASB's overall disclosure initiative, outlining summary progress on the implementation and research projects the IASB has decided to consider as part of the broader initiative.

Earnings per share. On hold. Originally a joint IASB-FASB project to converge the requirements for the calculation of earnings per share. This project is currently on hold pending an IASB staff review to develop a recommended course of action.

Financial Instruments – Macro Hedge Accounting. A project to consider risk management strategies referring to open portfolios (macro hedging) which are not specifically covered by the IASB’s project on general hedge accounting. A discussion paper was published on 17 April 2014. A second discussion paper is expected later in 2019.

Financial Instruments – Comprehensive Project. A multi-faceted joint IASB-FASB project to rewrite the requirements for accounting for financial instruments, consisting of a number of sub-projects.

IAS 1 – The Classification of Liabilities.” This project seeks to develop a more general approach to the classification of liabilities under IAS 1, “Presentation of Financial Statements,” which is based on the contractual arrangements in place at the reporting date. In April 2016, the Board paused work on this project while it finalized revisions to the definitions of assets and liabilities in its “Conceptual Framework for Financial Reporting.” At its September 2018 meeting, the IASB reactivated the project. The next project step will be finalized amendments to IAS 1.

IAS 8 – Accounting Policy Changes. This project looks into the accounting for voluntary changes in accounting policies — in particular, changes in accounting policies that result from agenda decisions published by the IFRS Interpretations Committee. An exposure was published March 27, 2018, with comments requested by July 27, 2018. No further news on this one.

IAS 16 – Proceeds Before Intended Use. This project looks into the accounting for any proceeds from selling items produced while bringing an item of property, plant and equipment to the location and condition necessary for it to be capable of operating in the manner intended by management. An exposure draft ED/2017/4, “'Property, Plant and Equipment — Proceeds before Intended Use (Proposed amendments to IAS 16),” was published June 20, 2017, with comments requested by October 19, 2017. Although the next project milestone is now an IFRS amendment, no expected date has been provided yet.

IAS 19/IFRIC 14 — Remeasurement at a plan amendment, curtailment or settlement / Availability of a refund of a surplus from a defined benefit plan. A narrow scope project to clarify (a) the calculation of current service cost and net interest an when an entity remeasures the net defined benefit liability (asset) when a plan amendment, curtailment or settlement occurs; and (b) whether a trustee's power to augment benefits or to wind up a plan affects an employer's unconditional right to a refund and thus, in accordance with IFRIC 14, restricts recognition of an asset. An exposure draft was published June 18, 2015, with a comment letter deadline of October 19, 2015. Amendments to IAS 19 regarding (a) were issued February 7, 2018. Amendments regarding (b) are still outstanding.

IAS 37 – Onerous Contracts. This project looks into the costs a company should include when assessing whether a contract will be making a loss. An exposure draft with comments requested by April 15, 2019, was published December 13, 2018.

Management commentary (Wider corporate reporting). The aim of this project is to review and update the “Management Commentary Practice Statement” issued in 2010 to help address the lack of alignment and integration between wider corporate reporting and financial reporting.