7 IASB General Update

Executive Summary

Purpose of the paper

This paper provides the Board with an update on projects the Secretariat is currently monitoring, including the work of the IFRS Interpretations Committee.

As agreed with the Board, the Secretariat monitors projects being undertaken by the IASB and IFRS Interpretations Committee. This is undertaken to inform the Board about the progress and decisions being made by the IASB on active projects. Discussion by the Board may also help inform interactions with international standard setter meetings, including the IASB's Accounting Standards Advisory Forum (ASAF).

Summary of the Issue

Topics addressed in this paper include those discussed by the IASB at its December 2024 meeting.

Topics for noting

• IASB Work Plan
• Management Commentary

IFRIC Update

There has not been any significant update to the tentative conclusions and tentative agenda decisions presented in the previous UKEB Interpretations Committee Update. At the time of writing, no new matters have been received by the Interpretations Committee. The next Interpretations Committee meeting is on 11 March 2025.

Decisions for the Board

Topics for noting

• Do Board members have any questions or comments on the topics for noting?

Recommendation

N/A

Appendices

Appendix A: IASB Work Plan Appendix B: Management Commentary Appendix C: List of IASB projects

Appendix A: IASB work plan update

December 2024 IASB work plan

A1At its December 2024 meeting the IASB was provided with an update on its work plan ¹. The purpose of the update was to support any decisions about projects required by other individual project papers and to support an assessment of overall progress. The IASB was not asked to make any decisions.

Project completions in H2 2024

A2The following IASB accounting projects were completed in H2 2024:

1. Post-implementation Review (PIR) of IFRS 9 - Impairment ² (July 2024)
2. Annual Improvements Volume 11 ³ (July 2024)
3. PIR of IFRS 15 ⁴ Revenue from Contracts with Customers (September 2024)
4. Power Purchase Agreements (Contracts Referencing Nature-dependent Electricity) (December 2024) ⁵

UKEB work on current IASB work plan

A3At the time of writing, the IASB work plan includes 13 IFRS Accounting projects that are within the UKEB's core remit. ⁶

A4The UKEB Secretariat has active projects covering all IFRS Accounting projects in the IASB's current work plan with the exception of Translation to a Hyperinflationary Presentation Currency (IAS 21).

A5No work is currently being carried out on this project by the Secretariat. As set out in the 2024/25 Regulatory Strategy, this project will be addressed subject to resource availability. The IASB is currently at the stage of reviewing feedback on its exposure draft (ED), issued in July 2024.

Expected IASB accounting project completions and consultation documents in H1 2025

A6The IASB does not currently expect to complete any accounting projects in H1 2025. The only new accounting project consultation document (ED) currently expected in H1 2025 relates to Dynamic Risk Management (Q2 2025).

A7The fact that the amendments to IFRS 19 Subsidiaries without Public Accountability are not now expected to be issued until Q3 2025 has an impact on the UKEB's IFRS 19 endorsement project plan. This is because the UKEB plans to consider IFRS 19 and the amendments as a package. This change will be reflected in the UKEB Work Plan and forward agenda.

A8IASB decisions on project direction are expected in H1 2025 on the following projects:

1. Intangible Assets
2. Statement of Cash Flows and Related Matters
3. Amortised Cost Measurement

Expected additions and IASB pipeline projects

A9The IASB staff expect to start work on the IASB's Fourth Agenda Consultation in early 2025. This project will seek feedback on the IASB's potential strategic and technical priorities for the period 2027-2031.

A10The IASB has already committed to carrying out several pipeline projects and the December 2024 work plan update indicated the IASB's latest position:

1. PIR of IFRS 9 - hedge accounting The IASB staff think there might be benefit in overlapping this PIR with the consultation on the DRM exposure draft (expected by the end of H1 2025). The staff will discuss the start of this PIR at a future meeting.
2. Credit risk disclosures—Targeted Improvements The IASB staff are considering when to start this project.
3. International Tax Reform—Pillar Two Model Rules Since Pillar Two is still in the process of being implemented in various jurisdictions, the IASB staff have no plans to make this active at this stage.
4. Removal of the temporary nature of the exemption in IFRS 6 This is expected to be included in the next volume of Annual Improvements (timing to be determined).

A11In addition, the IASB staff continue to gather feedback on pollutant pricing mechanisms and will update the IASB on their findings at a future meeting.

Appendix B: IFRS Practice Statement I Management Commentary project

UKEB Project Status: Monitoring IASB Next Milestone: Revised Practice Statement H1 2025 IASB Management Commentary project

Context

B1The Exposure Draft (the ED) updating IFRS Practice Statement 1 Management Commentary was published by the IASB in May 2021. In June 2024, the IASB decided to finalise the project by making targeted amendments to the proposals in the ED.

B2As there are potential implications for connectivity with IFRS Accounting Standards, the UKEB is monitoring this project.

B3The IASB staff provided a project update and an overview of the proposed targeted amendments discussed by the IASB at its September and November 2024 meetings and at the December 2024 ASAF meeting.

IASB December 2024 meeting

B4The IASB met on 9 December 2024 to discuss further targeted refinements to the proposals in the ED. The refinements are intended to support coherence and connectivity of information across a company's general purpose financial reports.

B5The IASB staff characterised the feedback from ASAF members as being supportive of the overall approach being taken.

B6The IASB discussed an overview of how the requirements in the revised Practice Statement relate to IFRS Sustainability Disclosure Standards, specifically areas of content and information about long-term prospects, intangible resources, and relationships and environmental, social and governance matters.

B7The IASB also discussed staff analysis on why an exemption from disclosure for commercial sensitivity (like that in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information regarding commercially sensitive opportunities) was unnecessary in the context of the revised Practice Statement.

B8The IASB was not asked to make any decisions on these two matters.

B9Regarding further refinements relating to sustainability reporting, the IASB tentatively decided to:

1. Align terminology used in the Practice Statement with that used in the Conceptual Framework and IFRS Sustainability Disclosure Standards.
2. Clarify that the notion of coherence includes effectively representing the connections between various matters.
3. Specify that the notion of coherence extends to coherence between information in an entity's management commentary and in its other general purpose financial reports, which include its financial statements and its sustainability-related financial disclosures, if those disclosures are provided outside the management commentary.
4. Include the requirements and guidance on the notion of coherence in a separate chapter in the revised Practice Statement, to give this attribute greater prominence.

B10The IASB decided to issue the revised Practice Statement without re-exposing its proposals.

Next steps

B11The IASB expects to issue the revised Practice Statement in H1 2025.

Appendix C: List of active IASB projects

This Appendix provides a list of all active IASB projects ⁷, including links to the IASB project page and, where relevant, to the UKEB project page and any UKEB reports or comment letters. Items highlighted in grey are changed from the last report.