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The following is a summarised update of the main discussion and tentative decisions taken by the IASB at its meeting on 24-25 April 2018.

For more details and comprehensive information on the IASB’s discussion see:

Primary Financial Statements

The board discussed the following topics:

  • Clarifying the requirements for management performance measures

The Board tentatively decided that all entities shall identify a measure (or measures) of profit or comprehensive income that, in the view of management, communicates to users the financial performance of the entity.

  1. If an identified measure is a subtotal or total required by paragraph 81A of IAS 1 (would include the existing subtotals in that paragraph and the proposed new subtotals developed as part of this project), an entity shall identify this measure.
  2. If an identified measure is not a subtotal or total required by paragraph 81A of IAS 1, the measure is a management performance measure and the following requirements apply:
    1. a reconciliation should be provided in the notes between that measure and the most directly comparable subtotal or total required by paragraph 81A of IAS 1;
    2. the measure should be labelled in a clear and understandable way so as not to mislead users; and
    3. In addition, the following disclosures are required:
      1. An explanation of how the measure provides useful information about an entity’s financial performance; and
      2. a statement that the measure provides management’s view of the entity’s financial performance and is not necessary comparable with other entities.
  • Requirements for management-defined adjusted earnings per share in the financial statements

The Board tentatively decided that if an entity identifies a management performance measure, it is required to:

  1. disclose in the notes adjusted EPS calculated consistently with that management performance measure. To calculate the numerator of adjusted EPS, an entity shall make the following adjustments, and no other, to the management performance measure:
    1. add or deduct all income or expenses between the most directly comparable subtotal or total required by paragraph 81A of IAS 1 and profit or loss attributable to ordinary equity holders of the parent entity; and
    2. if the management performance measure is a pre-tax and/or pre-non-controlling interests measure, make further adjustments for the effects of tax and/or non-controlling interests on the differences between the management performance measure and the most directly comparable subtotal or total required by paragraph 81A of IAS 1.
  2. disclose the effects of tax and non-controlling interests separately for each of the differences between the numerator of adjusted EPS and the numerator of EPS.


The Board tentatively decided that:

  1. an entity should be prohibited from presenting adjusted EPS in the statement(s) of financial performance.
  2. an entity would continue to be permitted to disclose other adjusted EPS.  

The Board will continue discussing topics within the project’s scope in future meetings.

Business Combinations under Common Control Research Project

The Board discussed two alternative approaches that are currently being developed for a subset of transactions within the scope of the project. No decision was made and the Board will continue its discussion about this topic at future meetings.

Goodwill and Impairment Project

The Board decided not to consider allowing any identifiable intangible assets acquired in a business combination to be included within goodwill.  To enable the Board to decide on the next step, the Board directed the staff to perform a further analysis of this matter and present it in a future meeting.

Dynamic Risk Management Research Project

The Board discussed the application of qualifying criteria to the target profile and the dynamic nature of portfolios. No decision was made; however, the Board tentatively decided that staff should continue developing the model and update the Board in a future meeting. 

Disclosure Initiative - Definition of Material

The Board discussed the comments received on the Exposure Draft Definition of Material - Proposed amendments to IAS1 and IAS8. No decision was made and the Board will redeliberate the proposals in the Exposure Draft in a future meeting.

Implementation Issues in IFRS Standards

The Board received an update on the January and March 2018 meetings of the IFRS Interpretations Committee (IC) which was provided for information only.The details of these IFRIC meetings are available at:


27 July 2018ED/2018/1 - Accounting Policy Changes (Proposed amendments to IAS 8)