IASB Meeting May 2019
IASB Meeting May 2019
Provision: The board discussed the stakeholders feedback on the scope of a possible project to amend IAS 37, but no decisions have been made.
ED/2018/2 ''Onerous Contracts - Cost of Fulfilling a Contract'': The board discussed the feedback on the exposure draft, but no decisions were made. According to the exposure draft the cost of fulfilling a contract include all directly related cost (incremental costs of the contract and an allocation of other costs incurred on activities to fulfil the contract).
Primary Financial Statements: The IASB decided that an exposure draft should be issued with reference to this consultation.
IFRS 17 Insurance Contracts: An exposure draft ''Amendments to IFRS 17'' is expected by the staff to be published end of June 2019.
The staff's approach to revise IFRS Practice Statement 1 - Management Commentary was discussed by the board. The revised Practice Statement will provide guidance that:
- Consolidates innovations in narrative reporting.
- Addresses gaps in reporting practice.
- Remains principle-based but contains sufficient detail to support application.
No decision has been made.
Goodwill and Impairment:
The IASB discussed how to improve the disclosure requirements for business combinations and whether a relief from mandatory annual impairment test should be provided.
The staff recommended to add the following disclosure objectives to provide users with information:
- To evaluate the strategic rationale for a business combination.
- To understand the amount of, and evaluate the rationale for, the total consideration transferred.
- To evaluate the extent to which the key objectives of the business combination are being achieved.
With reference to simplifying the impairment testing model the staff recommended to:
- Remove the requirement to carry out an annual quantitative impairment test for goodwill when no indicator exists.
- Apply the same relief for intangible assets with indefinite useful life and for intangible assets not ready for use.
The board plans to publish a discussion paper in the second half of 2019.
This IASB Update highlights preliminary decisions of the International Accounting Standards Board (Board). The Board's final decisions on IFRS® Standards, Amendments and IFRIC® Interpretations are formally balloted as set forth in the "Due Process Handbook" of the IFRS Foundation and the IFRS Interpretation Committee.