On 15 March 2016 the Board discussed the comments received on the
Exposure Drafts Conceptual Framework for Financial Reporting
and Updating References to the Conceptual Framework.
No decisions were made.
At the April Board meeting the Board will discuss a strategy for
finalising the Conceptual Framework project.
Amendments to IFRS 4: Applying IFRS 9 Financial
Instruments with IFRS 4 Insurance Contracts (Agenda Paper
paper 14A: Summary of comment letters and outreach
Agenda paper 14B: Summary of feedback from users of financial
Agenda paper 14C: Project direction and plan
its March 2016 meeting, the Board considered the feedback from the
comment letters and outreach meetings on the Exposure Draft Applying
IFRS 9 Financial Instruments (IFRS 9) with IFRS 4
Insurance Contracts (IFRS 4) (‘the ED’). The deadline for comment
letters on the ED was on 8 February 2016.
Board tentatively decided to set the direction for the redeliberations of the proposed amendments to
IFRS 4, by deciding:
a. to confirm the
ED proposal to provide a temporary exemption from applying IFRS 9 for
qualifying entities. 11 Board members agreed with this decision and 3
Board members disagreed.
b. to confirm the
ED proposal that the eligibility for the temporary exemption should
be determined at the reporting entity level only. Hence, the
assessment of eligibility should consider all of the activities of
the reporting entity, and the reporting entity would apply only one
Standard, either IFRS 9 or IAS 39 Financial Instruments:
Recognition and Measurement, to all of its financial instruments
in its financial statements. 13 Board members agreed with this
decision and 1 Board member disagreed.
c. to confirm
that there should be a fixed expiry date for the temporary exemption.
13 Board members agreed with this decision and 1 Board member
d. to confirm the
ED proposal to provide an overlay approach. 13 Board members agreed
with this decision and 1 Board member disagreed.
e. to confirm the
ED proposal that the temporary exemption from applying IFRS 9 and the
overlay approach should be optional. All 14 Board members present
agreed with this decision.
The remaining technical issues, including the qualifying criteria for
the temporary exemption, will be discussed in the April and May Board
meetings. The Board aims to issue the amendments to IFRS 4 in
The Board met on 15 March 2016 to
discuss the proposed amendments to IFRS 3. The proposed amendments
would clarify how to apply the definition of a business and would
result in the same requirements as the FASB proposed amendments
(except where there is already a difference between IFRS Standards
and US GAAP).
The Board noted that the Application Guidance of IFRS 3 would be
worded differently from the FASB’s proposed amendments. The Board
tentatively decided to issue an Exposure Draft that includes this difference
and ask constituents for their views.
All IASB members agreed with this decision.
The IASB expects to issue the Exposure Draft in the second quarter of
Goodwill and Impairment (Agenda Paper 18)
The Board met on 16 March 2016 to discuss its Goodwill and Impairment
project. This project responds to some of the findings from the
IASB’s Post-implementation Review (PIR) of IFRS 3 Business
At this meeting the Board discussed the following areas:
a. a possible modification to the
impairment test to address users’ concerns about late recognition of
impairment losses and overstatement of goodwill
b. improving the disclosure
requirements for goodwill and impairment
c. a possible improvement to the definition
and guidance for customer relationships acquired in a business
No decisions were made.
The Board will continue its discussions of this project at future
meetings. Those discussions are expected to include consideration of
quantitative information about the amounts and trends of reported
goodwill, impairment and intangible assets over recent years,
gathered in conjunction with staff at the Accounting Standards Board
of Japan (ASBJ), the European Financial Reporting Advisory Group
(EFRAG) and the US Financial Accounting Standards Board (FASB) .
The Board also expects to discuss this project again with the FASB
during the second quarter of 2016.
Agenda Consultation (Agenda Paper 24)
The Board discussed the feedback received in response to:
a. the Board’s Request for Views–2015
b. the Trustees’ Request for
Views–Trustees’ Review of Structure and Effectiveness
The papers did not include any staff recommendations
and no decisions were made at the meeting.
The staff will bring
an analysis to a future meeting of the Board that will:
a. discuss the balance of the Board’s
activities and the prioritisation criteria that should be applied to
b. discuss the comments received on
individual projects and what effect those comments should have on the
prioritisation of individual projects; and
c. propose a draft work plan of the Board’s
activities–to cover Standards-level projects and the research
Work plan—projected targets as at 18 March 2016
The work plan
reflecting decisions made at this meeting was updated on the IASB
website on 18 March 2016. View