This presentation was made by Mary Tokar, IASB, at the 17th Annual Meeting of OECD Senior Management Officials held at the OECD, Paris, on 2-3 March 2017 sbo-accruals-march-2017

1. The views expressed in this presentation are those of the presenter,
not necessarily those of the International Accounting Standards Board (the Board)
or IFRS Foundation.
Copyright © IFRS Foundation. All rights reserved
IFRS® Foundation
International Accounting
Standards Board:
Current projects and new
standards
Mary Tokar, IASB® Member
March 2017

2. Three aspects of the Board’s work 2
Major projects
Maintenance Implementation

3. Supporting implementation – changes
ahead 3
2016 2017 2018 2019
Revenue
Financial
Instruments
Leases Insurance
Conceptual
Framework
7 3 4Maintenance
amendments
What is required when?

4. Supporting implementation 4
Major new standards
• Transition/ Implementation Resource Groups
• Overview and training materials
• Webcasts
• Dedicated web page of resources

5. 5
Implementation – supporting major new
standards
IFRS 9 – Financial
Instruments
IFRS 15 –
Revenue
IFRS 16 – Leases
Implementation
page
go.ifrs.org/IFRS9-
implementation
go.ifrs.org/IFRS15-
implementation
go.ifrs.org/IFRS16-
implementation
Dedicated
email
ITG@ifrs.org revenuetrg@ifrs.org leases@ifrs.org
Webcasts   
Conferences   

6. Maintenance supports consistent
application
International Accounting Standards
Board (the Board) and IFRS
Interpretations Committee
• IFRS Interpretations Committee
– Interpretation of IFRS Standards
– Recommendation to the Board for targeted
amendments
– Agenda decision with educational material
• Post-implementation reviews
• Coordination with IOSCO C1
• Working with national standard setters
• Education initiative
– Conferences
– Webcasts
– Training materials
Maintenance of existing IFRS Standards 6
Maintenance

7. IASB Standard-setting activities 7
Major projects
Standards
• Conceptual Framework
• Insurance
• Materiality Practice Statement
• Rate-Regulated Activities
Research
• Principles of Disclosure (‘POD’)
• Primary Financial Statements
• Business Combinations under Common Control
• Dynamic Risk Management
• Financial Instruments with Characteristics of Equity
• Goodwill and Impairment
Research
pipeline
• Equity Method
• Pollutant Pricing
• Provisions
• Extractive Industries
• Variable and Contingent Consideration
• Feasibility studies for narrow projects (pensions,
hyperinflation, SMEs that are subsidiaries)

8. 8The refocused research programme
Projects
Primary financial statements
Principles of disclosure
Business combinations under common control
Dynamic risk management
Financial instruments with characteristics of equity
Goodwill and impairment
Share-based payment (2016)
Discount rates (2016)

9. 9Research pipeline
Projects
Equity method (for associates and joint ventures)
Extractive activities
Pollutant pricing mechanisms
Provisions
Variable and contingent consideration
Feasibility
studies
High inflation, rather than hyperinflation
Pensions: benefits that depend on asset returns
SMEs that are subsidiaries

10. Materiality: Non-mandatory IFRS Practice
Statement 10
Single assessment of materiality applied to financial statements
as a whole
Focus on materiality process, and the factors to consider in
making materiality judgements
Discuss application of materiality to (a) Errors, (b) Covenants
and (c) Interim financial reports
No new interpretations
Next steps: Final Board discussions December 2016, publication mid 2017

11. Materiality Practice Statement—the
Board’s tentative decisions 11
Requirements
of IFRS Standards
Knowledge about
primary users'
common information
needs
Qualitative
factors
Entity-specific
and External
Quantitative
factors
Organise the
information
within
the draft financial
statements
Step 1
Identify potentially
material information
Step 2
Assess whether information
identified is material
Step 3
Organise
Step 4
Review
Review the draft
financial
statements

12. 12IFRS around the world
go.ifrs.org/use-ifrs

13. 1313
Appendix
Recently and near-final major projects
Copyright © IFRS Foundation. All rights reserved

14. 1414Recent Standards
Standard Issued Effective
IFRS 9 Financial Instruments 2014 2018
IFRS 15 Revenue from Contracts
with Customers
2014
(clarifications
2016)
2018
IFRS 16 Leases 2016 2019

15. 1515Financial Instruments
Classification and measurement
• A logical, single classification approach
for financial assets driven by cash flow
characteristics and business model
• Improvements to own credit
Impairment
• Strongly supported forward-looking
‘expected loss’ model
• Represents a significant change in
accounting

16. 1616
• Establishes a single, comprehensive
framework for recognising revenue from
contracts with customers
• Provides clearer guidance on recognising
revenue than was previously available
• Means that revenue reporting will be
consistent across transactions, industries
and capital markets
• Improves comparability in the ‘top line’ of
financial statements
Revenue

17. 1717Leases
Main change
• All leases on the balance sheet
(except for short-term leases and
leases of low-value assets)
Main benefits
• Increases transparency
• Improves comparability
• Limits need for adjustments

18. 1818Upcoming Standard: insurance contracts
Improved
quality
Improves relevance and transparency by providing
information about:
• the effect of insurance contracts on financial
performance;
• sources of profits or losses through underwriting activity
and investing premiums from customers; and
• the nature and extent of risks from insurance contracts.
Improved
comparability
Easier to make comparisons between insurance contracts
and other types of contracts.
Replaces variety of accounting treatments with one
consistent approach.

19. 1919What is the Conceptual Framework?
• For the Board in setting IFRS Standards
• For preparers in developing accounting policies
• For other interested parties in understanding and interpreting IFRS Standards
• What is the objective of financial reporting?
• What makes financial information useful?
• What are assets, liabilities, equity, income and expenses; when should they be
recognised and derecognised; how should they be measured, presented and
disclosed?
• The Board may depart from aspects of the Conceptual Framework but will have
to explain any such departures in the Basis for Conclusion of the respective IFRS
Standard
It provides a consistent theoretical foundation
It addresses fundamental issues
It is not an IFRS Standard and it does not override IFRS Standards

20. 206Contact us 20
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