With new standards on revenue and financial instruments recently finalised, and with the leases and insurance contracts projects nearing completion, what’s next on the IASB’s agenda?
The 2015 Agenda Consultation sets out the Board’s vision for keeping IFRS fit for purpose, and seeks views on its work plan for the next five years.
In response to appeals for a period of relative calm, the IASB is shifting its focus, and plans to spend more time and resources up-front assessing:
By performing such an in-depth assessment at the research phase, the Board hopes to diagnose issues more accurately and thereby focus on those that really matter.
The issues on its research agenda are driven by various developments – including post-implementation reviews of new standards, issues raised by the IFRS Interpretations Committee and areas of controversy.
|Pollutant pricing mechanisms||No existing guidance|
|Disclosure initiative – Principles of disclosure*|
|Business combinations under common control*|
|Definition of a business||Post-implementation review of IFRS 3 Business Combinations|
|Goodwill and impairment|
|Income taxes||Application issues|
|Assets held for sale and discontinued operations|
|Financial instruments with characteristics of equity*||Areas of controversy|
|Primary financial statements (formerly Performance reporting)|
|Dynamic risk management (macro hedging)*|
|* Project has passed through the assessment stage and is at the development stage.|
Some of the projects, particularly in the area of business combinations, may be very timely, with M&A deal-making on the rise and investors focusing on business combination accounting. Other projects stem from a renewed attempt to resolve some long-standing controversial issues.
In setting its priorities, the IASB considered for each project:
The big question is whether the Board has struck the right balance, and has got its priorities right.
The agenda consultation provides the chance for all stakeholders to help steer the IASB’s standard-setting priorities.
This opportunity should not be missed, particularly as the IASB is proposing to extend the interval between agenda consultations from three to five years.
In formulating your response, a number of questions need to be considered – including the following.
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