The board is finalising an update to the conceptual framework for financial reporting to provide a more complete, clear and updated set of concepts to use when the board develops or revises IFRS standards.

IASB says it expects to publish the revised conceptual framework and to update references to the conceptual framework in IFRS standards around the end of the first quarter of 2018.

Feedback on the exposure draft relating to the definition of ‘material’ is now slated for April 2018. The Conceptual Framework for Financial Reporting, IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors currently contain similar but not identical definitions of ‘material’.

IASB says this inconsistency makes it hard for companies, auditors, investors and regulators to understand and apply the concept of materiality. The exposure draft is intended to clarify and align the definition of ‘material’ and provide guidance to help improve consistency in the application of that concept whenever it is used in IFRS standards.

The board plans to issue an exposure draft in the first quarter of 2018 to propose amending IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to lower the impracticability threshold regarding retrospective application of voluntary changes in accounting policies that result from agenda decisions. The proposed threshold would include a consideration of the costs and benefits of applying such changes retrospectively.

The board has proposed amending IFRIC 14 to clarify the accounting when other parties have rights to make particular decisions about a company's defined benefit plan. According to the work plan, before proceeding to draft the amendments, the board plans to perform further work on the possible effects of the amendments.

Amendments to IFRS 3 Business Combinations on the definition of a business posed clarifying how a company determines whether it has acquired a business or a group of assets are to be completed by Q2 2018. The accounting models currently differ for those two types of transactions.

According to the update, IASB has tentatively decided to consider ways of ensuring that impairment of goodwill is recognised in a timely fashion. The board has tentatively decided not to consider reintroducing amortisation of goodwill, and is also exploring whether some identifiable intangible assets could be subsumed within goodwill.

In addition, the board is exploring whether IFRS standards should be amended to reflect the effects of rate regulation. It has had initial discussions on a new accounting model for rate-regulated activities and says it will continue its discussions through the first quarter of 2018 before deciding whether to publish a second discussion paper or an exposure draft.

IASB work plan is here.

IASB updates January 2018 is here.

Report by Pat Sweet