The International Accounting Standards Board (IASB), the board saddled with the the responsibility of issuing the the International Financial Reporting Standards (IFRS), in their usual monthly practice met on May 20-22 to discuss issues concerning the Standards.

 

This article Highlights the main agenda points the IASB discussed during the May 2024 meeting as well as some major decisions taken.

Agenda For May 2024 IASB Meeting

The agenda points discussed by the board during the May 2024 meeting includes the following:

1. Financial Instruments with Characteristics of Equity

2. Post-implementation Review of IFRS 15 Revenue from Contracts with Customers

3. Rate-regulated Activities

4.  Proposed IFRS Taxonomy Update—Contracts for Renewable Electricity

5.Post-implementation Review of IFRS 9—Impairment

6. Second Comprehensive Review of the IFRS for SMEs Accounting Standard

For more details on this agenda points visit the IASB Website

 

Some Major Decisions Taken By IASB During The May 2024 Meeting

 

1. Financial Instruments with Characteristics of Equity

The IASB discussed a summary of stakeholder feedback on the Exposure Draft Financial Instruments with Characteristics of Equity, which proposed amendments to IAS 32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures and IAS 1 Presentation of Financial Statements.

 

The IASB was not asked to make any decisions.

Next step on the Matter:

The IASB will further analyse the feedback when it redeliberates the proposals in the Exposure Draft.

 

2. Post-implementation Review of IFRS 9—Impairment

The IASB decided that sufficient work has been completed to conclude the Post-implementation Review of IFRS 9—Impairment and to prepare a project summary and feedback statement.

All 14 IASB members agreed with this decision.

Next step on the Matter:

Subject to approval from the Due Process Oversight Committee, the IASB will publish a project summary and feedback statement on the Post-implementation Review of IFRS 9—Impairment.

3. Transition to the Third edition of the IFRS for SMEs Accounting Standard

The IASB tentatively decided:

A) to proceed with the transition requirements proposed in the Exposure Draft.

B) to add a relief from retrospective application for SMEs applying the amended paragraph 28.19 in Section 28 Employee Benefits. An SME applying the relief would not be required to adjust the carrying amount of assets covered by other sections of the Standard for changes in employee benefit costs that were included in the carrying amount before the date of initial application.

All 14 IASB members agreed with these decisions.

Next steps On The Matter:

The IASB will discuss the findings from its fieldwork on the potential effects of requiring SMEs that provide financing to customers as one of their primary businesses to use an expected credit loss model. The IASB will then discuss the proposals for impairment of financial assets and accounting for issued financial guarantee contracts, including the related proposed disclosure and transition requirements.

4. Amendments to IAS 8 and suggested amendments to other IFRS Accounting Standards

The IASB tentatively decided to retain the proposal in the Exposure Draft to delete the temporary exception in paragraph 54G of IAS 8. This exception requires an entity developing an accounting policy for regulatory account balances to refer to the Framework for the Preparation and Presentation of Financial Statements instead of the Conceptual Framework for Financial Reporting issued in 2018.

All 14 IASB members agreed with this decision.

Next step On The Matter:

The IASB will continue to redeliberate the project proposals.

For further details on these and other decisions taken by the board during the meeting you may visit the IASB website

Effects On The IASB Work plan

As a fallout of this meeting Delloite, a reputable finance services firm has analysed the changes the decisions will have on the board’s project work plan. You can access this analysis in their website

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