In October 2024, the International Accounting Standards Board (IASB) convened for its regular monthly meeting from October 21 to 23 to deliberate on significant issues related to International Financial Reporting Standards (IFRS). This article outlines the agenda of the meeting and highlights the key decisions made by the IASB.
IASB October 2024 Meeting Agenda
The IASB’s October 2024 meeting featured a comprehensive agenda, covering several crucial topics. Below is a summary of the agenda items discussed:
- IASB Work Plan Update (Agenda Paper 8)
- Dynamic Risk Management (Agenda Paper 4)
- Financial Instruments with Characteristics of Equity (Agenda Paper 5)
- Intangible Assets (Agenda Paper 17)
- Business Combinations—Disclosures, Goodwill, and Impairment (Agenda Paper 18)
- Second Comprehensive Review of the IFRS for SMEs Accounting Standard (Agenda Paper 30)
- Power Purchase Agreements (Agenda Paper 3)
- IFRIC Update September 2024 (Agenda Paper 12)
- IFRS Accounting Taxonomy 2024—Proposed Update 1 IFRS 18
- Presentation and Disclosure in Financial Statements (Agenda Paper 25)
Key Decisions Made by the IASB
1. Dynamic Risk Management (DRM)
The IASB tentatively decided on several important aspects related to Dynamic Risk Management:
- Adding the DRM requirements to a new chapter in IFRS 9.
- Requiring first-time adopters who choose to apply the DRM model to do so prospectively.
- Excluding reduced disclosure requirements for the DRM model in IFRS 19 Subsidiaries without Public Accountability at this time.
All 14 IASB members agreed unanimously on these decisions.
2. IFRS for SMEs Accounting Standard
Key decisions regarding the IFRS for SMEs Accounting Standard included:
- Amending paragraph 19.13 of the Exposure Draft to specify that an SME must assess, at the date of acquisition only, whether measuring the fair value of contingent consideration involves undue cost or effort, without allowing reassessment.
- Withdrawing the proposal to add a sentence to paragraph 5.11 of the IFRS for SMEs Standard related to providing additional information about expenses by nature or function.
These decisions were supported unanimously by all 14 IASB members.
Next Step: The IASB plans to issue the third edition of the IFRS for SMEs Standard in the first half of 2025.
3. Hedge Accounting
For the proposed hedge accounting amendments, the IASB made the following tentative decisions:
- Requiring entities to apply hedge accounting requirements prospectively.
- Allowing entities to discontinue an existing hedging relationship on the date of initial application of the amendments and designate a new hedging relationship under the revised amendments.
These decisions were also unanimously supported by all 14 members.
Conclusion
The October 2024 meeting of the IASB resulted in several significant decisions that will impact future IFRS practices, particularly in DRM, SMEs, and hedge accounting. For more detailed information, visit the IASB official website.