Presentation made by Jane Pike, IFRS, at the 16th Annual OECD Accruals Symposium held at the OECD Conference Centre, Paris, on 21-22 March 2016.

1. The views expressed in this presentation are those of the presenter,
not necessarily those of the IASB or IFRS Foundation.
International Financial Reporting Standards
IASB Update
Progress and plans
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Jane Pike, Technical Principal
March 2016

2. 2Recent IFRSs
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Major Projects Effective date
IFRS 15 Revenue from Contracts with
Customers
1 January 2018
IFRS 16 Leases 1 January 2019

3. • IFRS 15 Revenue from Contracts with Customers issued
concurrently with the FASB in May 2014
• IASB deferred effective date to 1 January 2018 in Sept 2015
• Revenue Transition Resource Group supporting
implementation
• 37 submissions discussed at 4 meetings; 5 topics subsequently
considered by IASB and FASB
• IASB will publish targeted clarifications to 3 topics in IFRS 15
plus additional practical expedients for transition in April 2016
3Revenue Recognition
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4. • IFRS 16 Leases issued in January 2016
• Effective date of 1 January 2019
• Main features:
• Lessee: All leases on-balance sheet (except for short-term
leases and leases of small assets), interest and amortisation
presented separately in income statement
• Lessor: little change to existing accounting
• Decisions substantially converged with FASB
• Recognition of leases on-balance sheet; lease definition; liability
measurement; little change to lessor accounting
• Main difference: recognition of lease expenses and cash flows
4Leases
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5. 5Major Standards-level projects
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Major Projects
Insurance
Conceptual Framework
Disclosure Initiative
Rate-regulated Activities

6. • Status: Board completed its discussions on the model for
insurance contracts in February 2016
• Existing Standard allows a variety of approaches to be applied
• Main decisions:
• A current measurement model for insurance contracts
• Based on expected future cash flows
• Single model for all contracts with a practical expedient for short
term insurance
• The Board is targeting publication in early 2017
6Insurance
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7. IFRS 4 / 9 interaction
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7
Flexibility of both
IAS 39* and IFRS 4**
results in little volatility
in profit or loss
Interaction of IFRS 9***
and IFRS 4 may result
in increased volatility in
profit or loss
Interaction of IFRS 9 and
the new insurance
contracts Standard
assists in reducing that
volatility in profit or loss
IAS 39 + IFRS 4 IFRS 9 + IFRS 4
IFRS 9 + new
insurance contracts
Standard
Effective date of IFRS 9
1 January 2018
Effective date of the new
insurance contracts Standard
– not before 2020?
*IAS 39 Financial Instruments: Recognition and Measurement is pre-IFRS 9
**IFRS 4 Insurance Contracts sets out the current accounting requirements
for insurance contracts
***IFRS 9 Financial Instruments

8. 8What is the Conceptual Framework?
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• The Conceptual Framework is a set of concepts that can
assist:
– the Board when developing or revising Standards
– preparers to develop accounting policies
– others to understand and apply Standards
• Not a Standard – does not override any Standard
Conceptual
Framework
concepts
IFRS Standards

9. What did the Exposure Draft propose?
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9
• Measurement
guidance
• Role of profit or loss
and use of OCI
• Presentation and
disclosure guidance
• Derecognition
• The reporting entity
Fill Gaps
• Recognition criteria
• Definitions of
income and
expenses
Update
• Definitions of
assets and liabilities
• Role of prudence,
stewardship and
measurement
uncertainty in
financial reporting
Clarify
The existing Conceptual Framework has proved useful but some
improvements are needed
ED comment period ended 25 November 2015

10. 10Disclosure Initiative—Overview
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Materiality
Distinction
between
change in
policy and
estimate
Amendments
to IAS 7 ‘debt
reconciliation’
Completed projects
Amendments
to IAS 1
Implementation projects
Ongoing
activities
Digital
reporting
Standards
level
disclosure
review/
drafting guide
Principles of
disclosure
Research Projects

11. Disclosure initiative—overview contd.
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11
Not enough relevant
information
Too much irrelevant
information (overload)
Poor communication
Disclosure problem?
Disclosure Initiative
Improved disclosures
Enabling
preparer
judgement
POD
IAS 1Materiality
Better
disclosure
req’ments
IASB
drafting
guide
Technology
Review
existing
and
proposed
Standards
Address
individual
disclosure
issues

12. Why
• Concern that materiality is not being applied well in practice.
• Key contributor to the ‘disclosure problem’.
Research
• Consulted representatives of IOSCO and the IAASB.
• Review of how materiality is applied in different jurisdictions.
Output
• Exposure Draft of an IFRS Practice Statement (PS) – a non-
authoritative form of guidance.
• The PS compliments the current guidance on materiality in
IFRS Standards.
• The Final PS aims to assist management’s use of judgement
in making decisions about materiality when preparing
financial statements.
Materiality Practice Statement
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12

13. • Status: Developing an accounting model to propose within a
further Discussion Paper
• Today there are no standardised requirements for
rate-regulated activities
• Interim relief for first-time adopters of IFRS
• Issued IFRS 14 Regulatory Deferral Accounts in Jan 2014
• Permits grandfathering of previous GAAP accounting practices
• Enhanced presentation and disclosure matters
• Current project
• Discussion Paper published September 2014
• Support for recognising some regulatory deferral account
balances, focusing on a revenue-based approach
13Rate Regulated Activities
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14. 14Research programme March 2016
© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Assessment stage Development stage
discount rates
business combinations under common
control
goodwill & impairment principles of disclosure
income taxes dynamic risk management
pollutant pricing mechanisms equity method
post-employment benefits
financial instruments with
characteristics of equity
primary financial statements On hold
provisions, contingent liabilities and
contingent assets
extractive activities; foreign currency
translation and high inflation
share-based payment

15. IASB work plan
Details of all projects on the IASB work
plan can be viewed at
http://go.ifrs.org/IASB-Work-Plan
15
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16. 16Thank You
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