The IASB reviewed the due process steps that it has taken to date on Effective Date of Amendments to IFRS 10 and IAS 28, a narrow scope amendment to IFRS 10 Consolidated Financial Statements and IAS 28 Associates and Joint Ventures that defers the effective date of Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. All 13 IASB members present confirmed that they are satisfied that the IASB has completed the necessary due process steps on the project to date and therefore instructed the staff to commence the balloting process for the amendment. No members of the IASB intend to dissent from publication of the amendment.

Next steps

1. the scope, approach and timing of the initial phase of the project;
2. the content, form and due process of a Drafting Guide for the IASB's internal use; and
3. the various options the IASB could consider as the next steps, after the initial phase is complete. The IASB noted that the initial phase does not involve a comprehensive review of existing disclosure requirements.

The IASB met on 15 December to discuss IFRS implementation issues.

Agenda Paper 12A: IFRS 2 Share-based Payment—Classification and Measurement of Share-based Payment Transactions (Summary of due process followed)

The IASB reviewed the due process steps that it has taken in developing the narrow-scope amendments to IFRS 2 Share-based Payment on the classification and measurement of share-based payment transactions. All 13 IASB members present confirmed that they are satisfied that the IASB has completed the necessary due process steps on the project to date and therefore instructed the staff to commence balloting process for the amendments. No IASB members indicated that they intend to dissent from the publication of the final amendments to IFRS 2.

In addition, the IASB tentatively decided that the effective date of the amendments should be 1 January 2018 and earlier application should be permitted. All 13 IASB members present agreed with this decision.

Next steps

The IASB plans to issue the final amendments to IFRS 2 in Q1 of 2016.

Agenda Paper 12B: Classification of Liabilities

The IASB considered a summary of feedback on the Exposure Draft Classification of Liabilities (Proposed amendments to IAS 1). No decisions were made.

Next steps

In response to requests by IASB members, the staff expect to discuss at a future meeting analysis that:

1. tests the proposals against a number of specific transaction types raised in the comment letters; and
2. examines the guidance with respect to the transfer of equity as a means of settlement by using specific examples raised in the consultation.

Agenda Paper 12C: Measurement of interests in associates and joint ventures that, in substance, form part of the net investment

Next steps

1. retain the 'substantially all' threshold and ask constituents whether they think that this practical approach is useful;
2. clarify, in the illustrative examples of the proposed amendments that a building acquired and an in-place operating lease shall be considered a single asset for the evaluation of the 'substantially all' threshold;
3. clarify, in the proposed amendments to the application guidance of IFRS 3 that the acquired outsourcing agreements may be considered to provide an organised workforce and that the acquirer should consider whether the acquired outsourcing agreements perform a substantive process;
4. explain, in the Basis for Conclusions of the proposed amendments that where an entity acquires a supplier that then ceases generating revenues, because all output is consumed by the acquirer, the supplier would still be 'capable of' generating revenues, and so it might qualify as a business, if the other criteria are met; and
5. add two illustrative examples on how to apply the proposed guidance in the financial sector and in the extractive industries sector.

1. the proposed amendments should be applied to transactions occurring on or after the effective date with early application permitted.
2. The comment period for the ED should be 120 days.

The IASB met on 15 December 2015 to receive a general update on the IASB's research programme. The update reflected developments since the last update, which had been provided in the IASB's September 2015 meeting. Information on the IASB's work plan, including its research programme, is available here.

The IASB was not asked to make any decisions.

The staff expect to provide a further update on the research programme in around three or four months.

1. considered the feedback received on its ED.
2. discussed the following topics related to the ED:
   1. identifying performance obligations (Agenda Paper 7B);
   2. licensing (Agenda Paper 7C);
   3. practical expedients on transition (Agenda Paper 7D); and
   4. other topics for which the IASB decided not to propose any amendments to IFRS 15 (Agenda Paper 7E).
3. considered an issue relating to the application of requirements in IFRS 15 Revenue from Contracts with Customers to constrain estimates of variable consideration (Agenda Paper 7H).

1. to amend IFRS 15 to clarify the factors that indicate when two or more promises to transfer goods or services are not separately identifiable. The IASB instructed staff to work with FASB staff to try to achieve converged wording with the FASB's related amendments to Topic 606. Seven of the 13 IASB members present agreed with this decision.
2. to confirm its previous decisions not to make amendments to IFRS 15 relating to:
   1. promised goods or services that are immaterial in the context of the contract; and
   2. shipping and handling activities.
   12 of the 13 IASB members present agreed with these decisions.

1. determining the nature of an entity's promise in granting a licence of intellectual property; and
2. the scope and applicability of the sales-based and usage-based royalties exception (the royalties constraint).

1. to permit an entity using the modified retrospective transition method and electing to apply the contract modifications practical expedient, to apply that expedient either:
   1. at the beginning of the earliest period presented in the financial statements in which IFRS 15 is first applied; or
   2. at the date of initial application of IFRS 15.
2. to permit an entity using the modified retrospective transition method to apply IFRS 15 either to all contracts or to contracts that are not completed contracts at the date of initial application.

Agenda Papers 7F and 7G: Principal versus agent considerations—feedback on ED and redeliberations

1. an entity determines whether it is a principal or an agent for each specified good or service promised to the customer;
2. a specified good or service is a distinct good or service (or distinct bundle of goods or services) to be provided to the customer; and
3. depending on the circumstances, a specified good or service may be a right to an underlying good or service to be provided by another party.

1. clarify that the indicators assist in the evaluation of control, rather than override or replace the control evaluation;
2. reframe the indicators to indicate when an entity is a principal, rather than when an entity is an agent;
3. clarify how each indicator relates to the control principle; and
4. clarify that one or more indicators may be more or less relevant to the control evaluation in different contracts.

The IASB considered the staff's findings on the research project on present value measurements—discount rates.

The IASB was not asked to make any decisions.

Next steps

The IASB will continue to consider the staff's findings at the next meeting.

The work plan reflecting decisions made at this meeting was updated on the IASB website on 18 December 2015. View it here.