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    Saturday 20 July 2019

    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.

    Management Commentary

    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. 

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