Documents issued during the quarter ended 31 March 2025 

During the quarter ended 31 March 2025, the IASB issued the final standards listed below:

During the quarter ended 31 March 2025, the IFRS Interpretations Committee (IFRIC) issued the final agenda decision listed below, which was described in the January 2025 RSM IFRS Newsletter available here: 

During the quarter ended 31 March 2025, the IASB issued the Exposure Drafts listed below:

IASB Meetings

The following is a summarised update of key matters arising from the discussions and decisions taken by the IASB at its meetings on the following dates:

• 28-29 January 2025
• 18-19 February 2025
• 18-20 March 2025

The full updates, as published by the IASB, can be found here. 

Research and standard setting

Pollutant Pricing Mechanisms (Jan): the IASB deferred the decision to add a project on pollutant pricing mechanisms to the work plan until the next agenda consultation. 

Business Combinations – Disclosures, Goodwill and Impairment (Jan, Feb & Mar): the IASB discussed stakeholder feedback on the Exposure Draft and redeliberated the project’s objective and approach. 

The IASB tentatively decided to: 

a) retain the project’s objective (‘for companies to provide more useful information to users about business combinations, at a reasonable cost’), but to adjust its wording to reflect the stage of the project; and
b) to retain its approach to achieving the project objective by continuing to only consider:

• requiring, for a subset of business combinations only, disclosure of information about the performance of, and quantitative information about synergies expected from, a business combination;
• proceeding with the other amendments to the disclosure requirements in IFRS 3 Business Combinations that were proposed in the Exposure Draft ;
• making some targeted improvements to the impairment test in IAS 36 Impairment of Assets to help mitigate management over-optimism and ‘shielding’, and to reduce cost and complexity; and
• making other amendments that might be necessary, for example, amendments to transition requirements in IFRS 3 and IAS 36 and to IFRS 19 Subsidiaries without Public Accountability.

The IASB discussed respondent’s concerns about conceptual issues in the Exposure Draft that may arise if an entity is required to disclose information about a business combination’s performance and expected synergies in its financial statements. 

The IASB will continue to redeliberate the proposed requirements and proposals in the Exposure Draft.

Amortised Cost Measurement (Feb): the IASB reviewed the project plan, including feedback from consultative groups, a plan for meetings with preparers, and a tentative timeline for deliberations. The IASB will start discussions on application issues within the project’s scope.

Financial Instruments with Characteristics of Equity (Feb): the IASB discussed possible changes to the presentation and disclosure requirements proposed in the Exposure Draft, focusing on the presentation of equity instruments and refinements to disclosure requirements. The IASB will consult stakeholder groups on these changes.

Intangible Assets (Feb & Mar): The IASB discussed the analysis of the feedback and evidence gathered in the initial stages of the project and possible project objectives and broad groups of topics that the IASB could explore in the project. The IASB will decide on the project direction.

Post-implementation Review of IFRS 16 Leases (Mar)

The IASB met in March to discuss:

• feedback and information from the first phase of the Post-implementation Review (PIR) of IFRS 16 Leases;
• a review of relevant academic literature relevant to PIR; and
• questions for a public consultation (Request for Information - RFI).

The IASB tentatively decided to include questions in the RFI to assess: 

• Overall Assessment of IFRS 16
• Identifying a Lease, Lease Term, and Lessee Accounting Model
• Lessor Accounting, Sale and Leaseback Transactions, and Transition
• Applying IFRS 16 with Other IFRS Accounting Standards

The IASB plans to publish the RFI in June 2025. 

Rate-regulated Activities (Mar): The IASB discussed whether to develop reduced disclosure requirements for the prospective IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities (Prospective RARL Accounting Standard). The IASB tentatively decided to confirm its proposal in the Exposure Draft Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures to require an entity applying IFRS 19 and the Prospective RARL Accounting Standard to apply all the disclosure requirements in the Prospective RARL Accounting Standard. 

The IASB will discuss any sweep issues that arise in the drafting process.

Statement of Cash Flows and Related Matters (Mar): The IASB met and discussed its initial research findings, including feedback from meeting with stakeholders, feedback from national standard-setters and, and an analysis of financial statements. 

Research focused on possible improvements to the requirements in IAS 7 Statement of Cash Flows. The main observations made related to:

• Classification and Aggregation: Stakeholders' issues with classification, aggregation and disaggregation of cash flow information, and cash flow measures might share similar solutions, potentially building on IFRS 18 Presentation and Disclosure in Financial Statements requirements.
• Non-Cash Transactions: Improving information about non-cash transactions is a priority for users, with various approaches to enhance presentation or disclosure.
• Operating Cash Flows: Changes to the direct/indirect method for presenting operating cash flows are not a priority for most stakeholders.
• Financial Institutions: The statement of cash flows for financial institutions provides limited useful information. The IASB will consider costs and benefits when deciding on applicability of some of the requirements.

The IASB will discuss a project plan based on its discussion of the initial research findings and further feedback from consultative groups.

Maintenance and consistent application

Consistent Application Activities (Jan)

The IASB considered an agenda decision from the November 2024 IFRS Interpretations Committee meeting and received updates on other matters discussed at that meeting.

Classification of Cash Flows related to Variation Margin Calls on ‘Collateralised-to-Market’ Contracts (IAS 7): Based on the evidence gathered, the Committee decided not to add a standard-setting project to the work plan as the matter does not have widespread effect. No objections were raised to the prospective Agenda Decision.

Provisions—Targeted Improvements (Jan)

The IASB considered stakeholder requests to extend the 120-day comment period for the Exposure Draft. No extension was given, and the comment deadline remained 12 March 2025.

Updating IFRS 19 Subsidiaries without Public Accountability: Disclosures (Jan, Feb & Mar)

The IASB discussed feedback on the Exposure Draft and tentatively decided to retain proposals related to IFRS 18 Presentation and Disclosure in Financial Statements and lack of exchangeability.

The IASB tentatively decided to change its proposals related to supplier finance arrangements by withdrawing a proposed definition of a supplier finance arrangement; removing the requirement to disclose the range of payment due dates; amending Pillar Two and financial instruments classification and measurement disclosures.

The IASB tentatively decided:

a. to permit an eligible subsidiary to apply the amendments on 1 January 2027, the same effective date as IFRS 19 itself;

b. to permit an eligible subsidiary to apply the amendments early; and

c. to make consequential amendments to Appendix C to IFRS 19.

The IASB determined that it has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the amendments to IFRS 19. The IASB will begin the balloting process for amendments to IFRS 19, which are planned to be issued in the second half of 2025.

IFRS Interpretations Committee (IFRIC) Latest decisions summary

The following is a summary of key matters arising from the discussions and decisions taken by the IFRIC at its meeting on 11 March 2025. The March IFRIC Update is available here. 

Agenda Decisions for the IASB’s consideration

Guarantees Issued on Obligations of Other Entities

The IFRIC considered feedback on the agenda decision published in the September 2024 IFRIC Update about how an entity accounts for guarantees that it issues.

The IFRIC finalised its discussions on that agenda decision, which concluded that the principles and requirements in IFRS Accounting Standards provide an adequate basis for an entity to determine how to account for a guarantee that it issues and accordingly recommended not to add a standard-setting project to the work plan. 

Recognition of Revenue from Tuition Fees (IFRS 15 Revenue from Contracts with Customers)

The IFRIC considered feedback on the agenda decision published in the September 2024 IFRIC Update about the period over which an educational institution recognises revenue from tuition fees. The Committee finalised its discussions on that agenda decision, which concluded that differences in the period over which educational institutions recognise revenue from tuition fees result from differing facts and circumstances and there is not significant diversity in accounting for revenue from tuition fees. Accordingly, the matter described in the request does not have widespread effect and the IFRIC recommended not to add a standard-setting project to the work plan

Recognition of Intangible Assets from Climate-related Expenditure (IAS 38 Intangible Assets)

The IFRIC considered feedback on the agenda decision published in the November 2024 IFRIC Update about whether an entity’s acquisitions of carbon credits and expenditure on research activities and development activities meet the requirements in IAS 38 to be recognised as intangible assets. The Committee finalised its discussions on that agenda decision, which concluded that there is no material diversity in the accounting for expenditure on research activities and development activities and that the matter described in the request does not have widespread effect. Accordingly, the Committee recommended not to add a standard-setting project to the work plan.

The IASB will consider these agenda decisions at its April 2025 meeting. If the IASB does not object to each agenda decision, it will be published in April 2025 in an addendum to the March IFRIC Update.

Other matters

Translation to a Hyperinflationary Presentation Currency

The Committee discussed the IASB’s project on Translation to a Hyperinflationary Presentation Currency. Committee members provided input on a possible way forward in response to feedback on an aspect of the translation method proposed in the Exposure Draft Translation to a Hyperinflationary Presentation Currency.

The IASB will consider the Committee members’ input and feedback from other stakeholders when deciding the project’s next steps.

Work in Progress

The Committee received an update on the status of open matters not discussed at its March 2025 meeting.

Strategy and governance 

The IASB met in March to discuss its approach to its Fourth Agenda Consultation and its project plan. The IASB plans to consult stakeholders about the content of its public consultation and expects to publish a request for information in the fourth quarter of 2025.

QUERY OF THE MONTH 

Biological assets and bearer plants 

Question 

The question related to the accounting for coffee plants that are used to grow the coffee beans within the coffee industry. More specifically whether the plants themselves are biological assets and whether they should be included in the balance sheet at fair value with movements going through the profit and loss account.  

IAS 41 requires the coffee beans themselves be treated as biological assets and fair valued on the balance sheet at the year end.  However, the coffee plants, which are often termed as bearer plants, should be treated as property, plant and equipment and accounted for in accordance with IAS 16.  As such the coffee plants should be initially recorded at cost and subsequently measured at either cost or fair value.  If the revaluation option is taken these should still be accounted for separately from the biological asset and the movements in those fair values should be taken to other comprehensive income.