IFRS - IASB Update November 2024 (2024)

Research and standard-setting

Management Commentary (Agenda Paper 15)

The IASB met on 20 November 2024 to discuss targeted refinements to its proposals for a revised IFRS Practice Statement 1 Management Commentary.

Targeted refinements—Design of disclosure objectives (Agenda Paper 15A)

The IASB tentatively decided to simplify the disclosure objectives proposed in the Exposure Draft Management Commentary by changing the assessment objectives from requirements to explanations.

All 14 IASB members agreed with this decision.

Targeted refinements—Material information (Agenda Paper 15B)

The IASB tentatively decided to align the proposed definition of ‘material’ more closely with the definitions in the Conceptual Framework for Financial Reporting and IFRS Standards by:

  1. referring to decisions made on the basis of the entity’s general purpose financial reports, which include the management commentary and the related financial statements;
  2. stating in the definition that these reports provide information about a specific reporting entity; and
  3. replacing the defined term ‘material’ with the term ‘material information’.

All 14 IASB members agreed with this decision.

Targeted refinements—Key matters (Agenda Paper 15C)

The IASB discussed targeted refinements:

  1. to clarify the role of the requirement to focus on key matters, including how it relates to the disclosure objectives and the requirement to provide material information;
  2. to improve the terminology used to refer to key matters; and
  3. to distinguish between the requirement to focus on key matters relating to each area of content and the requirement to provide coherent information about various matters affecting the entity.

The IASB was not asked to make any decisions.

Next step

The IASB will continue to discuss targeted refinements to the proposals in the Exposure Draft.

Second Comprehensive Review of the IFRS for SMEs Accounting Standard (Agenda Paper 30) 

The IASB met on 20 November 2024 to discuss sweep issues relating to transition requirements in the third edition of the IFRS for SMEs Accounting Standard.

The IASB tentatively decided:

  1. to provide relief from the disclosure requirement in paragraph 10.13(b) of the Standard, but only for the current period, on initial application of the third edition of the Standard.
    Thirteen of 14 IASB members agreed with this decision.  
  2. to withdraw the proposed disclosure requirement in paragraph A28(b) of the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard.
    Twelve of 14 IASB members agreed with this decision.

Next step

The IASB expects to issue the third edition of the Standard in the first half of 2025. 

Taxonomy

IFRS Accounting Taxonomy 2024—Proposed Update 1 IFRS 18 Presentation and Disclosure in Financial Statements (Agenda Paper 25)

The IASB met on 19 November 2024 to discuss the proposals set out in Proposed IFRS Taxonomy Update 1 IFRS 18 Presentation and Disclosure in Financial Statements. The IASB discussed potential refinements to the proposed modelling for:

  • the disclosures on management-defined performance measures (MPMs) (Agenda Paper 25A); and
  • the statement of profit or loss and the disclosures on specified expenses by nature (Agenda Paper 25B).

Management-defined performance measures (Agenda Paper 25A)

The IASB tentatively decided to include detailed modelling in the 2025 IFRS Accounting Taxonomy with some targeted changes to the proposals:

  1. to provide a structural link between an MPM and the measure in IFRS Accounting Standards it adjusts by:
    1. not adding an MPM line-item element; and
    2. adding an axis for ‘Components of management-defined performance measure’ with a pre-defined member representing the MPM value; and
  2. to develop a formula/validation rule to express the reconciliation from the measure in IFRS Accounting Standards to the MPM.

All 14 IASB members agreed with this decision.

Statement of profit or loss and other proposals (Agenda Paper 25B)

The IASB tentatively decided to adjust the modelling for the statement of profit or loss, specifically:

  1. to change the labels of specific elements with the reference type ‘common practice’ that are expected to be used only for presentation so that the labels reflect the expected presentation category;
  2. to add category elements for specific elements with the reference type ‘disclosure’ or ‘example’;
  3. to remove the label ‘total’ from elements that might be classified in more than one category by a single company or in different categories for different companies; and
  4. to change the allocation of specific elements between presentation groups.

Thirteen of 14 IASB members agreed with decision (a), subject to reviewing the elements in the pre-ballot draft. All 14 IASB members agreed with decisions (b)–(d).

The IASB also tentatively decided to make changes to the proposed modelling for the disclosures on specified expenses by nature, specifically:

  1. to remove the line-item elements representing totals of specified expenses by nature from the dimensional table and include them under a separate abstract element; and
  2. to enable the use of calculation relationships for the specified expenses by nature note.

All 14 IASB members agreed with these decisions.

Next step

The IASB will begin balloting the IFRS Taxonomy Update.

IFRS - IASB Update November 2024 (2024)
Top Articles
Latest Posts
Recommended Articles
Article information

Author: Stevie Stamm

Last Updated:

Views: 6410

Rating: 5 / 5 (80 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Stevie Stamm

Birthday: 1996-06-22

Address: Apt. 419 4200 Sipes Estate, East Delmerview, WY 05617

Phone: +342332224300

Job: Future Advertising Analyst

Hobby: Leather crafting, Puzzles, Leather crafting, scrapbook, Urban exploration, Cabaret, Skateboarding

Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.