15What is the Board investigating?
• In June 2021, the Board tentatively decided to retain the
objective of the project unchanged from that
described in the Discussion Paper. The objective is to explore
whether companies can, at a reasonable
cost, provide investors with more useful information about the
acquisitions those companies make. The
Board also tentatively decided to make no changes to the project
scope. The Board views its preliminary
views as a package that meets the project objective.
• The Board decided on a project plan at its meeting in September
2021. As part of that project plan the
Board is prioritising analysis of feedback on:
• disclosures about business combinations; and
• whether to retain the impairment-only model or whether to
reintroduce amortisation for goodwill (the
subsequent accounting for goodwill).
• The Board plans to:
• make tentative decisions about disclosures to help the Board get
a better understanding of the
disclosure package it could develop; and
• research particular aspects of the feedback on the subsequent
accounting for goodwill.
• This analysis will help the Board decide on the subsequent
accounting for goodwill. The Board is not
currently developing an amortisation model.
16
Board
investigating?
• In October 2021 the Board tentatively decided that, based on the
Conceptual
Framework for Financial Reporting, information can be required in
financial
statements about the benefits an entity’s management expects from a
business
combination and the extent to which management’s objectives are
being met.
• However, the Board is still investigating whether there might be
practical reasons
to not require the disclosure of such information in financial
statements, for
example that the information might be:
• Commercially sensitive
• Forward-looking in some jurisdictions and therefore might result
in an entity
being subject to additional litigation risk; or
• Difficult or costly to audit.
• The Board is also discussing the feedback on specific aspects of
the Board’s
preliminary views.
• Feasibility of estimating a useful life of goodwill
• In 2004, when moving to an impairment-only model, the Board noted
that
respondents to the Exposure Draft generally accepted that ‘the
useful life
of acquired goodwill cannot be predicted with a satisfactory level
of
reliability, nor can the pattern in which that goodwill diminishes
be
known.’
• Feedback to the Discussion Paper was more mixed than in 2004,
which
indicates a possible shift in stakeholder views.
• The Board is therefore investigating how feasible it is to
estimate a useful
life of goodwill and how useful that information would be.
• The effect of transition to an amortisation and impairment
model
• A few respondents commented on transition if amortisation
is
reintroduced, with many of these concerned about the potential
impact of
reintroducing amortisation on entities’ reported financial
positions.
• The Board is therefore investigating the effect reintroducing
amortisation
might have.
19
End of comment
the strategic direction and balance of the Board’s activities
the criteria for assessing the priority of financial
reporting
issues that could be added to the Board’s work plan
new financial reporting issues that could be given priority in
the
Board’s work plan
More focus
Leave unchanged
• The Board’s strategic direction is about right; consider some
minor changes to rebalance the
level of focus.
to respond to emerging issues.
• Partnering with national standard-setters could help increase the
Board’s capacity in some areas.
Activity Current level of focus Feedback
Research and standard-setting projects 40%–45% Decrease or leave
unchanged
Maintenance and consistent application of IFRS Standards 15%–20%
Increase or leave unchanged
The IFRS for SMEs Standard 5% Leave unchanged
Digital financial reporting 5% Increase
Understandability and accessibility 5% Increase
Stakeholder engagement 20%–25% Leave unchanged
21
Third Agenda Consultation—feedback overview (2/3)
• Stakeholders generally agreed with the Board’s proposed criteria
for assessing
the priority of financial reporting issues.
• Stakeholders would like to understand how the criteria have been
applied.
• Consider including all proposed criteria in the Due Process
Handbook.
• We should not add too many new projects to the work plan as we
will need
capacity to deal with emerging issues and interaction with the
ISSB.
• Some projects are related and could be worked on at the same
time—for
example, intangible assets and cryptocurrencies.
• The IASB should work on climate-related risks and pollutant
pricing
mechanisms together with the ISSB.
22
Some of the most commonly suggested projects (in alphabetical
order)
Cryptocurrencies
assets Going concern
• Detailed feedback analysis for the November Board meeting is
available on our
2021
Global baseline
Investor focus
(enterprise value)
MembersChair Observers
International Accounting
Standards Board
*
1 Enhanced prototype climate standard
2 Enhanced prototype presentation standard
3 Digitisation strategy
8 Other items to inform standard-setting agenda
Source: TRWG webcast
Exposure Draft Consultation
Replace disclosure requirements in IFRS 13 Fair Value Measurement
and
IAS 19 Employee Benefits with a new set of disclosure
requirements
developed applying the proposed Guidance
New approach for the Board to use when developing and
drafting
disclosure requirements in IFRS Standards (proposed Guidance)
Global Preparers Forum (GPF)
The GPF’s Role
• The GPF was created as a body that would be independent of
the IASB and the IFRS Foundation
• The specific aim is to provide the IASB with regular input from
the
international community of preparers of financial statements –
Feedback and input on the Board’s technical activities
– May also be consulted on strategic matters
• On-line resources: – Link to GPF web-page
– Link to GPF Constitution
@IFRSFoundation